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J.P. Morgan Successfully Executes Its First DeFi Transaction On A Public Blockchain

Milestone Date: November 2, 2022

Digital Asset Custody

The first public blockchain transaction by J.P. Morgan was executed as a part of The Monetary Authority of Singapore (MAS)’s Project Guardian’s digital asset and bond tokenization pilot (one of eight different pilots under the Project Guardian umbrella).

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Project GuardianProject Guardian

The purpose of Project Guardian is to explore opportunities for financial institutions to leverage blockchain technology to complete financial transactions using tokenized assets and DeFi applications. J.P. Morgan’s’s transaction took place on the Ethereum layer-2 network Polygon, using an adapted edition of the Aave protocol’s smart contract code.

The MAS reported the completion of a "real-time cross-currency transaction." The transaction involved using tokenized Singaporean dollar and Japanese yen deposits, and included a simulation of trading tokenized government bonds. Depending on how the MAS follows up with Project Guardian’s outcomes and the extent to which other central banks and government institutions are watching the project, the successful transaction could mark an important step toward the recognition and adoption of blockchain due to its decentralized nature and financial efficiencies.

“The live pilots led by industry participants demonstrate that with the appropriate guardrails in place, digital assets and decentralized finance have the potential to transform capital markets. This is a big step towards enabling more efficient and integrated global financial networks. Project Guardian has deepened MAS’ understanding of the digital asset ecosystem and has contributed to the development of Singapore’s digital asset strategy. We look forward to working with more institutions to advance global learning on policies, standards, and best practices for digital asset regulation and responsible innovation,” said Mr. Sopnendu Mohanty, Chief FinTech Officer, MAS.

By Elizabeth Morrison

Published:November 3, 2022


Press Release

First Industry Pilot for Digital Asset and Decentralised Finance Goes Live

Monetary Authority of Singapore

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