The trade was done under Project Guardian from the Monetary Authority of Singapore (MAS).
The multinational financial corporation JP Morgan has successfully completed its first ever cross-border transaction using DeFi services on November 2, 2022. The deal was made possible by Project Guardian, a pilot initiative run by the Monetary Authority of Singapore (MAS) to research potential decentralized finance (DeFi) uses in wholesale funding markets. This pilot was a further step in studying how conventional financial institutions may conduct financial transactions using tokenized assets and DeFi protocols, among other use cases.
Oliver Wyman Forum, a corporate leadership platform, SBI Digital Asset Holdings, and DBS Bank- the largest bank in Singapore, were among the financial institutions that participated in the pilot project.
Using a modified version of the smart contract code from the AAVE protocol, the deal was carried out on the Ethereum layer-2 solution Polygon.
According to MAS, tokenized Singaporean Dollar and Japanese Yen deposits were used in a live cross-currency transaction, coupled with a practice exercise where tokenized government bonds were bought and sold.
The announcement came from Tyrone Lobban, Head of Blockchain Launch and Onyx Digital Assets at JP Morgan’s Onyx business unit on Twitter on November 2. He noted that the tokenized SGD deposits happened to be the first issuance of tokenized deposits by a bank.