American investment bank J.P. Morgan Chase & Co will be exploring DeFi innovation with the Monetary Authority of Singapore (MAS) by piloting the tokenization of DeFi on public blockchain networks.

J.P. Morgan enters DeFi with Singapore

Tokenized bonds will be used and deposits made in a permissive liquidity pool to facilitate DeFi transactions, which involve borrowing on the public blockchain.

Joining J.P. Morgan for the pilot program are DBS Bank, and Marketnode, a SGX joint venture for bonds, which will act as “trust anchors”. The solution will only be accessible to wholesale buyers, even though it leverages public blockchains.

This news follows Jamie Dimon, CEO of J.P. Morgan Chase, highlighting the importance decentralized finance (DeFi), and blockchain in an annual letter to shareholders.

Singapore gets big on blockchain

The Monetary Authority of Singapore supports blockchain and seeks to investigate four aspects of it.

• Open, interoperable networks;
• The trust anchors
• Asset tokenization
• Protocols of Institutional-Grade DeFi

Mr Sopnendu Mohanty, Chief FinTech Officer of the MAS, explained that, through the project, the MAS is seeking “to sharpen our understanding in this rapidly transforming digital assets ecosystem.”

The Flipside

• The MAS previously expressed concerns over the potential risks associated with cryptocurrencies and discouraged retail investors who wanted to own them.

Why you should care

J.P. Morgan works with Singapore in order to maximize the DeFi benefits and mitigate the risk.

J.P. Morgan gets more involved with crypto. Learn why:

JPMorgan (NYSE:): Undervalued, Has 30% Growth Potential

JP Morgan Morgan Stanley (NYSE:) Hint Bitcoin Involvement But Require More Demand

Crypto should always be included in your portfolio. Check out J.P. Morgan’s reasoning here:

JP Morgan – 3 Reasons Bitcoin Should be Part Of Your Investment Portfolio

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