The American investment bank JPMorgan will study the economic potential of cryptocurrencies and consider options for their use within the framework of the project of the Central Bank of Singapore “Project Guardian”.
To this end, JPMorgan Chase & Co teamed up with Singapore-based DBS Bank Ltd and digital markets infrastructure operator Marketnode. The project will explore the possibility of tokenizing assets and DeFi using open interoperable networks. It is expected that this will allow trading crypto assets on different platforms, including the already existing financial infrastructure.
The companies will also explore institutional-level 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.
Sopnendu Mohanty, Director of Financial Technology at the Monetary Authority of Singapore (MAS), said that tokenization could potentially 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 involved in a separate trial of Singapore’s interbank payment system on the Partior blockchain. The corporate 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.
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