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Financial Institutions Embrace Blockchain Innovations
Leading financial institutions on Wall Street are shifting their focus towards industrializing proofs-of-concept (PoCs) developed within the blockchain experiment known as Project Guardian.
JPMorgan’s Focus on Blockchain Development
JPMorgan’s blockchain platform, Onyx, is particularly keen on converting the insights gained from its pilot program with the Monetary Authority of Singapore (MAS) into tangible products. During the TokenizeThis event held in Miami on May 10, Stephanie Lok, product manager of JPMorgan’s Onyx, highlighted the company’s focus on investment fund tokenization as a key area of interest.
WisdomTree’s Interest in RWA Tokenization
Another traditional firm heavily invested in blockchain-enabled finance migration is WisdomTree, an asset manager. Maredith Hannon, head of business development for WisdomTree, emphasized the company’s interest in portfolio personalization and blending portfolios with checking accounts. WisdomTree envisions the potential benefits of real-world asset tokenization for investor portfolios, aiming to create a variety of allocation variations and risk profiles.
WisdomTree is also exploring the provision of different on-chain services through a unified interface for its clients, integrating tokenized portfolios and traditional banking services into a single application.
Project Guardian Initiative
Launched in May 2022, Project Guardian seeks to explore decentralized finance (DeFi) applications and asset tokenization in wholesale funding markets. The initiative focuses on developing open and interoperable networks, institutional-grade DeFi protocols, asset tokenization, and trusted infrastructure.
Tokenized Funds Gain Popularity
In a report by Moody’s, the value of tokenized funds surged from $100 million at the beginning of 2023 to approximately $800 million, driven by the rising tokenization of U.S. treasuries. Public and private blockchains are witnessing the inclusion of various assets, such as Franklin Templeton’s U.S. Government Money Fund expanding to Polygon and UBS Asset Management deploying a tokenized money market fund (MMF) on the Ethereum blockchain.
Tokenization of MMFs offers the potential to combine stability with the technological advantages of stablecoins. Recent developments include DigiFT’s launch of US Treasury bill depository receipt (DR) tokens and Misyon Bank’s partnership with Taurus to leverage digital asset custody and tokenization technology.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
