JPMorgan uses a DeFi application for 1ste time

J.P. Morgan has executed its 1st trade on public blockchain using DeFi, Tokenized Deposits & Verifiable Credentials in collaboration with the The Monetary Authority of Singapore, which is the central bank of Singapore. This all happened on a public chain, namely Polygon.

What did JP Morgan exactly do?

JP Morgan bank used 0xPolygon for the trade because of the lower gas fees than the Ethereum Mainnet. In the future JP Morgan could explore other blockchains too.

Then they used AaveAave so that we could leverage their permissioned pools concept. So they deployed a modified version of Aave Arc so that we could set certain parameters such as interest rate and fx rates. The lending pool can be seen here.

After this they issued Tokenized Singapore Dollar Deposits! A token deposit which is a general liability of JPM. It’s a native token giving stable on-chain value without the scalability issues of stablecoins.

The first ever issuance of Tokenized Deposits by a Bank! The Tokenized Deposit contract issued by J.P.Morgan can be seen here.

What is institutional DeFi?

JP Morgan describes institutional DeFi as;

“a system that. combines the power and efficiency of DeFi protocols with a level. of safeguards to meet regulatory compliance and customer-safety. requirements.”