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

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.