JPMorgan, Apollo Global Grab First Mover Advantage With Upcoming Tokenized Enterprise Mainnet

Benzinga ·  Nov 28, 2023 11:31

JPMorgan Chase (NYSE:JPM) and Apollo Global Management (NYSE:APO) will be partnering to create a tokenized enterprise mainnet. This collaboration emerged during their joint work on the Monetary Authority of Singapore's (MAS) Project Guardian pilot project.

What Happened: The enterprise mainnet will provide the expertise to add applications to a network with an existing Know Your Customer (KYC)-compliant set of institutional banks, broker-dealers, and asset managers.

Apollo Global partner Christine Moy in an interview with Forbes said, "Being able to start with tokenized Treasuries and tokenized U.S. dollars, but then jumping to tokenized money market funds without a significant lift from both a work effort and a resource perspective."

Read Next: JPMorgan Initiates First Collateral Settlement Using Digital Tokens, Blockchain

In mid-November, MAS launched five additional industry pilots to Project Guardian for testing various use cases around asset tokenization. It had participants from 17-member financial institutions.

The companies came together to test digital assets for a smooth investment and management of flexible portfolios and alternative assets, automated portfolio rebalancing, and customization at scale.

Why Does It Matter: The enterprise mainnet initiative is being likened to Ethereum's pioneering strides, positioning it as a first-mover in the field much like Ethereum capitalized on its early advantage. This platform is seen as the foundation for future next-generation innovations.

"First it was about token standards, then it was DeFi, then it was NFTs," Moy told Forbes. "But it all started in the Ethereum ecosystem because new innovations could take advantage of the built-in network effects."

Moy said how production-grade tokenization assisted in creating JPMorgan's new tradable product, intraday repo. JPM blockchain head, Tyrone Lobban, revealed that the new system has already processed more than $900 billion in assets and around $2 billion per day of intraday repos through the company platform.

Also Read: EXCLUSIVE: Tokenization Will Empower Emerging Economies, Sologenic's Bob Ras Says

Photo: Shutterstock

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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