JPMorgan and Apollo Global Management, as part of the Monetary Authority of Singapore’s Project Guardian, are driving a shift in the tokenization landscape. Christine Moy, partner at Apollo Global Management, and Tyrone Lobban, blockchain head at JPMorgan, recently discussed their plans in an exclusive interview with Forbes.
Moy revealed a significant development: the establishment of an “enterprise mainnet” resulting from their collaboration with MAS. This enterprise mainnet allows for scalability and the addition of applications to an existing network that already includes KYC-compliant institutional banks, broker-dealers, and asset managers. According to Moy, “This creates a unique opportunity to accelerate the addition of various asset types and applications maximizing built-in network effects.”
Moy also highlighted the successful implementation of JPMorgan’s new tradable product, the intraday repo, as an example of production-grade tokenization at scale. She emphasized that the system functions as an enterprise mainnet and plays a crucial role in facilitating the offering of tokenized investment instruments.
However, Lobban disclosed that the new system has already processed over $900 billion in assets. What’s interesting is that intraday repo trades have reached around $2 billion, even though there was no market for it before the system was introduced.
According to an announcement by MAS, JPMorgan and Apollo are among the 17 financial institutions participating in the Project Guardian test, exploring various applications of asset tokenization.
Lobban went on to discuss the practical applications of their intraday repo product, highlighting major players like Goldman Sachs, DBS, and BNP actively utilizing the platform. The case study revealed significant cost savings for clients, with over 55% savings compared to their current funding costs.
In addition, JPMorgan and Apollo teamed up with BlackRock and Barclays to launch TCN (Tokenized Collateral Network). This initiative operates on the Onyx Digital Assets platform, enabling seamless collateral movement and providing clients with an enhanced investment experience and utility.
Moreover, JP Morgan has introduced a cross-border payment token called JPM Coin, which is managed by Onyx. This payment system enables the smooth movement of liquidity within the JP ecosystem. Clients of J.P. Morgan can transfer their US Dollars held in deposit with the bank using this system.
In addressing the difficulties posed by various software stacks and blockchain interoperability, Lobban emphasized the significance of creating a user experience that remains unaffected by the underlying complexities. He explained that Project Guardian seeks to offer solutions that simplify the intricacies of multiple chains and assets, ultimately promoting a seamless user experience.
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