Traditional finance giants JPMorgan and Apollo have successfully worked with a handful of blockchain companies to demonstrate proof of concept for how asset managers could tokenize funds on the blockchain of their choice, according to a press release.
JPMorgan’s Onyx Digital Assets partnered with interoperability layer Axelar, infrastructure provider Oasis Pro and Provenance Blockchain to manage large-scale client portfolios, execute transactions and enable automated portfolio management of tokenized assets, according to the release.
Oasis Pro enabled the tokenization of assets, such as Apollo funds, in the Provenance Blockchain Zone, according to the release.
The initiative is part of Project Guardian, a partnership led by the Monetary Authority of Singapore (MAS) together with traditional financial institutions to identify opportunities and potential risks using decentralized finance. The announcement was made at the Fintech Festival in Singapore.
The demonstration also allowed asset managers to buy and rebalance their positions in tokenized assets across multiple chains.
“Our goal is to create solutions that deliver significant efficiencies and enable better outcomes for asset managers and investors through personalized, highly scalable portfolios, regardless of asset class or where those assets are managed and recorded,” said Tyrone Lobban, Head of Onyx Digital. Assets, said in the release.
The move comes as a number of traditional financial institutions show growing interest in the blockchain industry. Earlier this year, financial heavyweights including Charles Schwab, Citadel Securities and Fidelity Investments announced the launch of cryptocurrency exchange EDX Markets.
Onyx used the Axelar network to enable interoperability with the private blockchain, Provenance Blockchain Zone, used for the project. Oasis Pro, a provider of fintech infrastructure for real-world assets, implemented the tokenization of the assets in the Provenance Blockchain Zone.
“This is believed to be the first of its kind blockchain interoperability solution for institutional financial services,” said Anthony Moro, CEO of Provenance Blockchain.
Origin Blockchain has supported more than $16 billion in transactions and currently has $9 billion in real-world financial assets on-chain, according to a press release.
JPMorgan executed its first live blockchain-based collateral transaction involving BlackRock and Barclays in October.