Executives from banking giants JPMorgan Chase and Apollo revealed plans for a tokenized ‘enterprise mainnet’ formed during a collaboration on the Monetary Authority of Singapore’s (MAS) Project Guardian pilot.
On November 15, MAS launched five additional industrial pilots at Project Guardian to test various use cases around asset tokenization, involving 17 member financial institutions, including JPMorgan and Apollo. The duo collaborated to test digital assets for more seamless investment and management of discretionary portfolios and alternative assets, automated portfolio rebalancing, and personalization at scale.
Members of the Guardian Project. Source: mas.gov.sg
In an interview with Forbes, Christine Moy, a partner at Apollo Global Management, explained how production-grade tokenization helped create intraday repositories, JPMorgan’s new tradable product. The lender’s head of blockchain, Tyrone Lobban, revealed that the new system has already processed more than $900 billion in assets, adding:
“Before this, there wasn’t really an intraday repo market, and now we’re clearing about $2 billion a day in intraday repo trades through our platform.”
According to Moy, the system functions as an enterprise mainnet and believes it has a first-mover advantage in the race to offer tokenized investment instruments. She said:
“Obviously, we’ve seen the progress and innovation of Ether (ETH) and how, as pioneers, they had the network effects, and now that’s where all the next-generation innovation has been created.”
The ‘enterprise core network’ provides the scalability to add applications to a network with an existing set of Know Your Customer (KYC) compliant institutional banks, broker-dealers and asset managers.
Related: Singapore central bank to test live wholesale CBDC for settlements
Through Project Guardian, financial institutions are working on ideal software stacks that could accommodate independent interoperability between different asset groups.
On November 24, MAS established measures for digital payment token (DPT) service providers to discourage speculation in cryptocurrency investments.
Determining customers’ risk awareness, refusing credit card purchases and not offering incentives are some of the ways MAS asked DPT service providers to help retail customers avoid price gouging.
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