United States – JP Morgan, a multinational banking firm, successfully executed the initial cross-border transaction utilizing DeFi or Decentralized Finance on a public blockchain.
MAS, or the Monetary Authority of Singapore’s Project Guardian, facilitated the trade on November 2. It became a part of an initial program to explore possible DeFi applications in comprehensive funding markets.
In other words, the pilot was another move into investigating how typical funding institutions can utilize DeFi protocols and tokenized assets to conduct funding transactions, along with other use cases.
DBS Bank, the biggest bank in Singapore, SBI Digital Asset Holdings, a banking firm in Tokyo, and Oliver Wyman Forum, a business leadership program, were part of the pilot platform.
Polygon, an Ethereum layer-2 network, completed the trade and used Aave’s revised version.
According to MAS, a live cross-currency trade involved tokenized Japanese yet and Singaporean dollar deposits and modeled selling and buying tokenized bonds in the government.
Tyrone Lobban, head of Onyx Digital assets and blockchain launch, stated through Twitter that the deposits of tokenized Singapore dollars were the initial transaction the bank initiated.
MAS’ chief fintech officer, Sopnendu Mohanty, stated that the transaction was a bit move to a more capable funding network, and the newest pilot helped expand the cryptocurrency strategy of the country.
Umar Farooq, Onyx by JP Morgan’s CEO, stated the on-chain transaction of JP Morgan was the first time a big financial institution had deposits tokenized on a public blockchain.
Aave, a DeFi lending procedure, also commented on the new platform, adding that the trade is a big milestone for the crypto industry since it denotes a big step to linking typical funding advantages into DeFi.
Project Guardian officially started in May 2022, which is a month after the agreement between DBS and JP Morgan. The agreement was to establish a new blockchain interbank project to match the CBDCs or Central Bank Digital Currencies’ work.
On another note, according to MAS or Monetary of Singapore, Singapore targets to be a center for blockchain in finance. It has been the ambition of Singapore.
Ravin Menon, MAS’ managing director, stated that applying cryptocurrencies for tokenizing funding assets or use cases to boost efficiency and lessen risk in funding transactions is what Singapore wants if a hub about testing with programmable money. However, this country needed to be more friendly toward digital assets because of the volatility. It sends mixed signals to the crypto industry.
On the bright side, the city-state approved to proceed with blockchain technology, and Project Ubin is proceeding, along with Project Guardian.