JPMorgan, Apollo Tokenize Funds in 'Proof of Concept' With Axelar, Oasis, Provenance

The aim of the project was to allow wealth managers to tokenize funds and to be able to purchase and rebalance positions in tokenized assets across multiple interconnected chains.

AccessTimeIconNov 15, 2023 at 4:42 a.m. UTC
Updated Jan 26, 2024 at 2:43 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Traditional-finance giants JPMorgan and Apollo successfully worked with a handful of blockchain firms to demonstrate "proof of concept" for how asset managers could tokenize funds on the blockchain of their choice, according to a press release.

JPMorgan’s Onyx Digital Assets collaborated with interoperability layer Axelar, infrastructure provider Oasis Pro and Provenance Blockchain to manage large-scale client portfolios, execute trades and enable automated portfolio management of tokenized assets, according to the release.

After this article was published, press statements revealed several other participants in the demo: Interoperability protocol LayerZero; Ava Labs, creator of the Avalanche blockchain; Web3 developer Biconomy; and asset manager WisdomTree.

Oasis Pro enabled the tokenization of assets, such as Apollo funds, on the Provenance Blockchain Zone, according to the release.

The initiative is part of Project Guardian, a collaborative effort led by the Monetary Authority of Singapore (MAS) alongside traditional finance institutions to discover opportunities and potential risks using decentralized finance. The announcement was made at Singapore’s Fintech Festival.

The demonstration also allowed wealth managers to purchase and rebalance their positions in tokenized assets across multiple chains.

“Our goal is to create solutions that bring significant efficiencies and enable better outcomes for asset and wealth managers and investors through personalized, highly scalable portfolios, regardless of asset class or where those assets are managed and recorded,” Tyrone Lobban, head of Onyx Digital Assets, said in the release.

The move comes as a number of traditional finance institutions are showing growing interest in the blockchain industry. Earlier in the year, financial heavyweights including Charles Schwab, Citadel Securities and Fidelity Investments announced the start of cryptocurrency exchange EDX Markets.

Onyx used the Axelar network to enable interoperability with the private blockchain, Provenance Blockchain Zone, used for the project. Oasis Pro, a fintech infrastructure provider for real-world-assets, implemented the tokenization of the assets on the Provenance Blockchain Zone.

“This is believed to be a first-of-its-kind blockchain interoperability solution for institutional financial services,” said Anthony Moro, CEO of Provenance Blockchain.

Provenance Blockchain has supported over $16 billion in transactions and currently has $9 billion in real-world financial assets on-chain, according to a press release.

JPMorgan carried out its first live blockchain-based collateral settlement transaction involving BlackRock and Barclays in October.

UPDATE (Nov. 15, 16:49 UTC): Adds LayerZero, Ava Labs, Biconomy and WisdomTree to the list of firms involved in the proof of concept demonstration in the third paragraph.

Edited by Bradley Keoun and Sandali Handagama.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.