The American investment bank JPMorgan will study the economic potential of cryptocurrencies and consider options for their use as part of the Central Bank of Singapore’s “Project Guardian” project.
For this JPMorgan Chase & Co united with Singapore-based DBS Bank Ltd and digital markets infrastructure operator Marketnode. The project will explore the possibility of asset tokenization and DeFi using open interoperable networks. This is expected to enable trading of crypto assets across multiple platforms, including existing financial infrastructure.
Companies will also explore institutional-grade DeFi protocols to combat market manipulation and risk. The first industry trial under Project Guardian involves the use of tokenized bonds and deposits in a permitted liquidity pool for DeFi applications built to borrow and lend on the public network.
The CFO of the Monetary Authority of Singapore (MAS), Sopnendu Mohanty, said that tokenization has the potential to increase the availability of financial services as well as increase liquidity in financial markets.
DBS Bank, JPMorgan and Temasek, co-owner of Marketnode, are also participating in a separate trial of Singapore’s interbank payment system on the Partior blockchain. The enterprise platform aims to increase the speed and reduce the cost of cross-border payments.
Earlier, JPMorgan announced the launch of a pilot project using blockchain to calculate collateral for loans and borrowings.
Source: Bits
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