J.P. Morgan has executed its first live trade (with real Balance sheet funds!) in DeFi using a modified version of the Aave protocol on Polygon mainnet, as part of the The Monetary Authority of Singapore’s (MAS) Project Guardian.

MAS launched this collaborative initiative with the financial services industry to explore the economic potential and value-adding use cases of asset tokenization and DeFi.

One of the main objectives of the project was to develop use cases for institutional-grade DeFi protocols to study the introduction of regulatory safeguards and controls to mitigate against market manipulation and operational risk.

The Aave protocol was utilized within a use case involving the supply and borrow of tokenized foreign exchange transactions, using SGD tokenized deposits (The 1st issuance of tokenized deposits by a bank!) issued by J.P. Morgan and JPY tokenized assets issued by SBI Digital Asset Holdings.

The world’s largest bank transacting on a public blockchain using Aave smart contracts is a huge milestone for DeFi, and represents a massive step towards bringing the trillions of dollars of traditional financial assets into DeFi, to fully realize the opportunities afforded by smart contract based, decentralized applications.

Read more here👇 www.mas.gov.sg/news/media-releases/2022/first-industry-pilot-for-digital-asset-and-decentralised-finance-goes-live