JPMorgan, Apollo, and Axelar Join Forces for Interoperability Project
JPMorgan’s Onyx Digital Assets team has partnered with global asset manager Apollo and cross-chain communication protocol Axelar, fintech infrastructure provider Oasis Pro, and the financial services-focused Provenance Blockchain to work on an interoperability proof-of-concept. This collaboration is part of the Monetary Authority of Singapore’s Project Guardian initiative, which advocates for open and interoperable private networks allowing tokenized asset exchange using decentralized finance protocols.
The aim of the JPMorgan-led project is to demonstrate how blockchain technology can manage large-scale client portfolios, execute trades, and enable automated portfolio management of tokenized financial assets. The system will allow fund managers to tokenize, purchase, and rebalance real-world asset positions across multiple blockchains while standardizing the processes for settling transactions on interoperable networks.
Breaking Down Barriers in Asset Management
The Onyx Digital Assets team used the Axelar network to achieve interoperability with a private and permissioned Provenance Blockchain Zone. This appchain is fully interoperable with the Provenance Blockchain mainnet. According to head of Onyx Digital Assets Tyrone Lobban, their goal is to create solutions that bring 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. The collaboration with Project Guardian is a step forward in showing how tokenized traditional and alternative investments can be automatically managed across multiple systems.
Axelar Inc. CEO Sergey Gorbunov emphasized that for Axelar network, interoperability doesn’t stop at the borders of any blockchain. He stated that public blockchains provide fast finality and transparency, which can be crucial in hybrid systems integrating real-world assets as well as private blockchains and off-chain systems. Anthony Moro, CEO of Provenance Blockchain, expressed that JPMorgan and Apollo’s use case demonstrates the importance of interoperable private and permissioned Provenance Blockchain Zones. With support from Axelar and Oasis Pro, they showed how portfolios could be rebalanced and trades executed between Onyx Digital Assets and Provenance Blockchain – a first-of-its-kind blockchain interoperability solution for institutional financial services.
Oasis Pro facilitated the tokenization of assets such as Apollo funds on the platform. Oasis Pro CEO Pat LaVecchia highlighted that delivering solutions for portfolio rebalancing is a critical step in advancing traditional asset management functions. This next generation technology will increase speed and efficiency across legacy systems.
JPMorgan’s Expanding Blockchain Initiatives
The proof-of-concept marks JPMorgan’s latest venture into blockchain-based financial services following its launch of automatic payments via its permissioned JPM Coin platform last week – a system now handling $1 billion in daily transactions. In October, JPMorgan’s Tokenized Collateral Network went live, enabling clients to utilize tokenized assets as collateral and completing its first transaction involving BlackRock and Barclays.
Hot Take
JPMorgan’s collaboration with Apollo, Axelar, Oasis Pro, and Provenance Blockchain on an interoperability proof-of-concept represents a significant step forward in demonstrating how blockchain technology can revolutionize asset management by enabling efficient trade execution and automated portfolio management across multiple networks. The success of this initiative underscores the growing role of blockchain in institutional financial services while highlighting JPMorgan’s commitment to expanding its blockchain-based offerings to meet evolving market demands.
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