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J.P. Morgan Taps Into Avalanche To Use Blockchain For Portfolio Management

Milestone Date: November 15, 2023

Digital Asset Custody

J.P. Morgan's Onyx, Apollo Global Management, and the Monetary Authority of Singapore (MAS) have collaborated on a proof-of-concept (under MAS “Project Guardian”) to showcase the benefits of asset tokenization in simplifying and automating the management of portfolios.

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Project GuardianProject Guardian

This initiative targets the complexity and operational demands of handling alternative assets in conventional portfolios, with the goal of enhancing efficiency and streamlining asset-oriented workflows. For the proof-of-concept, Onyx deployed the LayerZero Protocol, a cross-chain messaging protocol, to connect with a permissioned Avalanche subnet. This integration handled the subscriptions and redemptions of funds offered by WisdomTree.

The initiative revealed that tokenization streamlines the management of relevant assets by automating operations such as payments and updates to the investor registry through smart contracts, thereby allowing wealth managers to more efficiently update and track the status of those assets within client portfolios.

“By leveraging the power of blockchain technology, we have shown how the construction and management of discretionary portfolios could be revolutionized,” said Tyrone Lobban, Head of Onyx Digital Assets.

Several large financial institutions continue to explore leveraging blockchain technology to streamline their operations and administer financial instruments through tokenization. J.P. Morgan has been especially active and recently completed the first public tokenized trade for BlackRock.

By Elizabeth Morrison

Published:November 15, 2023



J.P. Morgan tests tokenized portfolios with Avalanche blockchain tech


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