12 April, 2024



JP Morgan Uses Polygon To Make First Decentralized Finance Trade

02 Nov, 2022

22 Nov, 2023

JP Morgan, the biggest bank in the United States, has successfully completed its first transaction on a public blockchain by using DeFi, Tokenized Deposits, and Verifiable Credentials as a component of the Monetary Authority of Singapore (MAS) Project Guardian. Ty Lobban, who heads up the blockchain initiative throughout J.P. Morgan, took to Twitter to provide what he calls a “transparent” explanation.

He began by explaining that they used Polygon for the trade since they wanted to do the transaction on Ethereum but needed inexpensive gas prices for several identity verification procedures. Given MAS’s ambition for open/interoperable networks, future iterations of Guardian will research more blockchains.

To evaluate the viability of asset tokenization and distributed finance applications in wholesale financing markets is the goal of Project Guardian. Additionally, JP Morgan employed Aave so that they could take use of the permissioned pools notion that the protocol offered. 

According to Lobban, they put into operation an altered version of Aave Arc so that they could control some factors, including interest rate and currency exchange rate settings.

Additionally, tokenized Singapore dollar deposits were made available by the bank. This is a deposit token, and JPM is responsible for it as part of its general obligation. It is a native token that provides a steady value on the chain and does so without the scalability concerns that are associated with stablecoins.

After that, they made use of W3C Verifiable Credentials in order to provide compliant access to Aave. Last but not least, Lobban said that they developed an Institutional Wallet. This wallet guarantees that traders will never have access to corporate cash, that only authorized DeFi methods may be used, and that venture capitalists will always be tied to trading orders.

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