JP Morgan made its first transaction using the decentralized finance (DeFi) protocol Aave Arc as part of test projects with the Singaporean central bank.
JP Morgan is utilizing Aave smart contracts for testing.
JP Morgan’s cryptocurrency operations are no longer a secret, despite what its CEO says in the public, and the bank has recently reaffirmed its support for the blockchain with its first transactions on the Aave protocol. It is a modified version of Aave Arc, a platform for institutional investors, in more detail:
WORLD! J.P. Morgan has executed its 1st *LIVE* trade on public blockchain using DeFi, Tokenized Deposits & Verifiable Credentials, part of @MAS_sg Project Guardian 🙌🚀🔥https://t.co/XI212SG4zg Many world 1sts here, & since this is public ⛓ here’s a transparent🧵on what we did:
— Ty Lobban (@TyLobban) November 2, 2022
These actions were performed on Polygon in order to maximize the weight of the transaction expenses caused by significant identity verification procedures (MATIC).
The Aave Arc code fork allows the bank to customize its own parameters, notably with regard to interest rates. Tokenized Singapore dollars and Japanese yen were used in these early attempts.
This pilot project distinguishes out for using a public blockchain, which enables open consultation on such activities. It is carried out in partnership with the Monetary Authority of Singapore (MAS).
The bank’s blockchain division’s CEO, Umar Farooq, offered the following response to this experiment:
“By leveraging verifiable credentials to establish identity, we were able to execute a live transaction between known attested parties. This is a significant step in the blockchain journey for financial institutions and follows many years of work by JP Morgan in developing blockchain-based solutions for financial services. »
