Executives at banking giants JPMorgan and Apollo have revealed plans for a tokenized “enterprise mainnet” formed during a partnership with the Monetary Authority of Singapore (MAS)’s Project Guardian pilot program.
On November 15, MAS introduced another five industry pilot projects to Project Guardian to test various use cases around asset tokenization, with 17 member financial institutions including JPMorgan Chase and Apollo participating. The two are working together to test digital assets to enable more seamless investment and management of discretionary portfolios and alternative assets, automated portfolio rebalancing and mass customization.
In Forbes magazine interviewApollo Global Managing Partner Christine Moy explains how production-grade tokenization helped create JPMorgan’s new tradable product, intraday buybacks. Tyrone Lobban, the lender’s head of blockchain, revealed that the new system has already processed more than $900 billion in assets, adding:
“Prior to this there was virtually no intraday repo market, and now we settle approximately $2 billion in intraday repo transactions through our platform every day.”
Moy said the system operates as an enterprise mainnet, and she believes it has a first-mover advantage in the race to offer tokenized investment tools. she says:
“Obviously, we’ve seen progress and innovation with Ethereum (ETH) and how being the first mover creates network effects, and now this is where all the next generation innovation is born.”
Enterprise Mainnet provides the scalability to add applications to existing know-your-customer (KYC) compliant networks of institutional banks, broker-dealers and asset managers.
related: Singapore’s central bank to trial instant wholesale CBDC for settlement
Through Project Guardian, financial institutions are developing the ideal software stack to accommodate agnostic interoperability between different asset pools.
On November 24, MAS established measures for digital payment token (DPT) service providers to discourage cryptocurrency investment speculation.
Determining customers’ risk awareness, declining credit card purchases and not offering any incentives are some of the ways MAS requires DPT service providers to help retail customers avoid price speculation.
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