JPMorgan and Apollo Plan Tokenized 'Enterprise Mainnet' via MAS' Project Guardian
Summary:
JPMorgan Chase and Apollo are teaming up to launch a tokenized 'enterprise mainnet', an initiative part of the Monetary Authority of Singapore's (MAS) Project Guardian pilot. The new system, which has already overseen $900 billion in assets, offers enhancements for investment and management of portfolios and promises scalability with added applications to a network already equipped with a KYC-compliant set of institutions. Recently, MAS proposed methods to mitigate speculation in crypto investments for Digital Payment Token (DPT) service providers.
Leaders from financial powerhouses Apollo and JPMorgan Chase have disclosed their intention to launch a tokenized 'enterprise mainnet', an initiative born out of the Monetary Authority of Singapore's (MAS) Project Guardian pilot program. On November 15, five new industry pilots were inducted into Project Guardian by MAS to explore a variety of asset tokenization applications. Among the 17 participating financial institutions were JPMorgan and Apollo, who partnered to experiment with digital assets to enhance the investment and management of discretionary portfolios and alternative assets, and automate portfolio rebalancing and customization on a larger scale.
Christine Moy, a partner at Apollo Global Management, shared in a Forbes interview how production-focused tokenization resulted in the formation of intraday repo, JPMorgan's latest tradeable offering. Tyrone Lobban, who heads JPMorgan's blockchain division, stated that the fresh system has already overseen more than $900 billion in assets. He added, “We didn’t have an intraday repo market prior, but are now settling close to $2 billion daily on intraday repo transactions on our platform.”
According to Moy, this system operates akin to an enterprise mainnet, and she envisions it as having the upper hand in the competition for providing tokenized investment tools due to its early entry into the market. She stated, “We've undoubtedly observed the advancements and innovation of Ether (ETH) and how, being a pioneer in the field, they benefitted from network effects and became the center of all contemporary innovation."
This 'enterprise mainnet' allows for the integration of applications into a network already equipped with a KYC-compliant set of institutional banks, broker-dealers, and asset managers.
Through the framework of Project Guardian, financial establishments are pinpointing the perfect software solutions to enable flexible interoperability across diverse asset pools.
On November 24, the MAS announced guidelines for Digital Payment Token (DPT) service providers to mitigate speculation in crypto investments. Enhancing the risk awareness of customers, rejecting credit card transactions, and not offering inducements are among the methods proposed by the MAS for DPT service providers to assist retail investors in steering clear of price speculation.
Published At
11/28/2023 10:52:28 AM
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