Leading investment banking company JPMorgan has big plans related to DeFi. During the Consensus 2022 conference, the head of JPMorgan's Onyx Digital Assets, Tyrone Lobban told Coindesk about the goals to provide institutional DeFi solutions, emphasizing the importance of tokenized assets.
According to Lobban, tokenizing capitals like the U.S. money market funds will make them available to serve as collateral in DeFi protocols. The perspective is to make large sums of assets available for the DeFi space. This will make it possible to carry out trading, lending, and other financial activities with the new tools in institutional assets.
JPMorgan's initiative aims to carry out a large-scale tokenization. Onyx, a blockchain-based network of the bank, sees two parts to make DeFi available to institutions.One of them is JPMorgan’s blockchain-powered collateral settlement layer that was broadened in May. Lobban noted that the app works via the bank's digital currency, JPM Coin.
The other part is a recent pilot led by Singapore’s Central Bank, revealed in May. Named "Project Guardian," it involves JPMorgan, DBS bank and digital markets infrastructure Marketnode. The program tests institutional-level DeFi leveraging liquidity pools composed of tokenized bonds and deposits. Financial institutions that take part in the pilot will verify customer identities.
JPMorgan has been interested in the crypto sector for a while. In July, 2021 the bank announced allowing wealth managers to access crypto. Recently, the bank said Bitcoin has a significant potential to increase in price.