The successful test was seen as a “major step towards allowing more efficient and integrated global financial networks” by the MAS Chief Fintech Officer.
JPMorgan Chase, a multinational financial institution has completed the first-ever international transaction utilising decentralised finance (DeFi) on a public blockchain.
Project Guardian, launched by Singapore’s central bank on November 2 as part of a pilot initiative to “research possible decentralised finance (DeFi) applications in wholesale financing markets,” enabled the transaction.
So, the pilot was an effort to learn more about the practical applications of tokenized assets and DeFi protocols for conventional financial institutions.
In addition to Singapore’s biggest bank, DBS Bank, the pilot program included the banking company SBI Digital Asset Holdings of Tokyo and the business leadership platform Oliver Wyman Forum.
The Monetary Authority of Singapore (MAS) said that it had successfully completed a “live cross-currency transaction” comprising tokenized deposits of Singaporean dollars and Japanese yen, as well as a mock purchase and sale of tokenized government bonds.
On Twitter on November 2nd, JP Morgan’s Onyx business unit’s Head of Blockchain Launch and Onyx Digital Assets, Tyrone Lobban, said that the bank has issued the first tokenized deposits in the form of Singaporean dollar (SGD) tokens.
Sopnendu Mohanty, Chief FinTech Officer at MAS said that the current pilot has contributed to the growth of the country’s digital asset strategy, calling it a “major step” towards more efficient financial networks.
The live pilots run by industry players show that digital assets and decentralized finance may revolutionize the financial sector if certain safeguards are put in place.
Protocol for Debt-to-Income Loans on the DeFi Another company AAVE has remarked on the new pilot by saying that the DeFi transaction is a “major step towards connecting conventional financial assets into DeFi” and is therefore a “big milestone” for the sector.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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