JPMorgan Chase & Co has teamed up with Singapore-based DBS Bank Ltd and digital markets infrastructure operator Marketnode to do this. The project will explore the possibility of asset Tokenization and DeFi using open interoperable networks.
This is expected to allow Crypto-assets to be traded on different platforms, including existing financial infrastructure.
Companies will also explore institutional-level DeFi protocols to combat market manipulation and risk. Project Guardian’s first industry test involves the use of tokenized bonds and deposits in a permitted liquidity pool for DeFi applications designed to borrow and lend on the public network.
Sopnendu Mohanty, director of financial technology at the Monetary Authority of Singapore (MAS), said Tokenization has the potential to increase the availability of financial services as well as liquidity in financial markets.
DBS Bank, JPMorgan and Temasek, co-owner of Marketnode, are also participating in a separate trial of Singapore’s Partior Blockchain-based interbank payment system. The corporate platform aims to increase the speed and reduce the cost of cross-border payments.
JPMorgan previously announced the launch of a pilot project using Blockchain to calculate loan and loan collateral.