Investment banking company JPMorgan Chase & Co. executed its first DeFi live trade on 2 November 2022. The bank first tokenized 100,000 Singaporean dollar deposits and SBI Digital Asset Holdings tokenized Japanese yen. The trade was executed using the Ethereum sidechain network, Polygon, and a modified version of the Aave protocol\u2019s smart contract code.<\/p>\n
This was the first-ever cross-border tokenized forex transaction. The transaction marks a significant step toward integration of traditional finance and decentralized finance (DeFi).<\/p>\n
The transaction was executed as part of the pilot study program with Singapore\u2019s central bank Monetary Authority of Singapore (MAS). The pilot study was aimed at developing an understanding of how traditional financial institutions can use tokenized assets and blockchain protocols to facilitate transactions. It is also meant to explore other use cases of the underlying technology.<\/p>\n
For the first testing phase, JPMorgan\u2019s blockchain division for wholesale payments\u2014called Onyx\u2014partnered with Singapore\u2019s DBS Bank, Singapore Exchange\u2019s digital asset platform Marketnode, Singaporean global investment company Temasek, and Japan\u2019s SBI Digital.<\/p>\n
Standard Chartered Plc. and HSBC Holdings are also part of the pilot study program that has been named Guardian.<\/p>\n
As part of the following trial, DBS and SBI traded against liquidity pools of tokenized government bonds. For this, they used tokenized SDG from DBS and Singapore Government Securities bonds. SBI did the same for Japanese bonds and tokenized yen.<\/p>\n
\u201cA live cross-currency transaction involving tokenized JPY and SGD deposits was successfully conducted. In addition, a simulated exercise was performed involving the buying and selling of tokenized government bonds,\u201d a press release from MAS stated<\/a>.<\/p>\n Tyrone Lobban, head of Onyx Digital Assets, shared the development on Twitter.<\/p>\n WORLD! J.P. Morgan has executed its 1st *LIVE* trade on public blockchain using DeFi, Tokenized Deposits & Verifiable Credentials, part of @MAS_sg<\/a> Project Guardian \ud83d\ude4c\ud83d\ude80\ud83d\udd25https:\/\/t.co\/XI212SG4zg<\/a> Many world 1sts here, & since this is public \u26d3 here\u2019s a transparent\ud83e\uddf5on what we did:<\/p>\n — Ty Lobban (@TyLobban) November 2, 2022<\/a><\/p><\/blockquote>\n\n