JPMorgan and Two More Banking Titans Conduct First Blockchain-Based Trade in New DeFi Pilot
Three world leaders of the banking industry are taking part in Project Guardian, an initiative from the Monetary Authority of Singapore (MAS) that aims to pilot use cases of digital assets and decentralized finance (DeFi).
JPMorgan, DBS Bank and SBI Digital Asset Holdings just completed the first live trades for the program’s first industry pilot, where they traded tokenized government bonds and executed foreign exchange transactions using tokenized Japanese yen (JPY) and Singapore dollars (SGD).
According to the MAS, the pilot shows that tokenized assets can be traded, cleared and settled instantaneously, which can bring down the costs of cross currency transactions.
Says MAS chief fintech officer Sopnendu Mohanty,
“The live pilots led by industry participants demonstrate that with the appropriate guardrails in place, digital assets and decentralized finance have the potential to transform capital markets. This is a big step towards enabling more efficient and integrated global financial networks.”
Umar Farooq, chief executive officer of JPMorgan’s blockchain unit Onyx, tells CNBC that the blockchain-based transactions were a first for the banking industry and called for precautionary measures against potential security issues.
“It was the first time we had tokenized deposits. I actually think it’s the first time any bank in the world has tokenized wallets on a public blockchain.
Using public blockchain, we had to spend a lot of time thinking through identity. We did lots of audits of smart contracts because again – they were publicly visible. And finally, it was using a protocol to actually make it all happen. It’s a lot of managing the risks. All of these were firsts for us.”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/PopTika
The post JPMorgan and Two More Banking Titans Conduct First Blockchain-Based Trade in New DeFi Pilot appeared first on The Daily Hodl.
Go to Source
Author: Rhodilee Jean Dolor
