Leading financial institutions on Wall Street are shifting their focus towards industrializing proofs-of-concept (PoCs) developed within the blockchain experiment known as Project Guardian. JPMorgan’s blockchain platform, Onyx, is particularly keen on converting the insights gained from its pilot program with the Monetary Authority of Singapore (MAS) into tangible products. During the TokenizeThis event held in Miami on May 10, Stephanie Lok, product manager of JPMorgan’s Onyx, said the company is focused on investment fund tokenization as a key area of focus. WisdomTree, another traditional firm heavily invested in blockchain-enabled finance migration, has also highlighted interest in real-world asset tokenization for investor portfolios and blending portfolios with checking accounts. The company aims to integrate various financial services into a single application to allow clients to use their money more effectively.
WisdomTree brings its expertise and experience in Bitcoin exchange-traded funds (ETFs) to the Project Guardian initiative. Launched in May 2022, Project Guardian seeks to explore decentralized finance (DeFi) applications and asset tokenization in wholesale funding markets. JPMorgan, DBS Bank, SBI Digital Asset Holdings, and WisdomTree are the main participants in Project Guardian, collaborating to assess the feasibility of DeFi and asset tokenization on a larger scale. The initiative focuses on developing open and interoperable networks, institutional-grade DeFi protocols, asset tokenization, and trusted infrastructure. Tokenized funds have been gaining popularity, with Moody’s reporting a surge in the value of tokenized funds from $100 million at the beginning of 2023 to approximately $800 million, driven by the rising tokenization of U.S. treasuries.
In a report, Moody’s highlighted that both public and private blockchains are witnessing the inclusion of various assets. Notable examples include Franklin Templeton’s U.S. Government Money Fund expanding from Stellar to Polygon, Backed Finance launching a tokenized short-term U.S. treasury bond exchange-traded fund (ETF), and UBS Asset Management deploying a tokenized money market fund (MMF) on the Ethereum blockchain. The report also mentioned that the tokenization of MMFs offers the potential to combine their stability with the technological advantages of stablecoins. DigiFT, a Singapore-based fintech company, recently announced the launch of its US Treasury bill depository receipt (DR) tokens, while Turkey’s Misyon Bank has partnered with Swiss firm Taurus to leverage its digital asset custody and tokenization technology.
Maredith Hannon, head of business development for WisdomTree, highlighted the company’s interest in portfolio personalization, blending portfolios with checking accounts, and the potential benefits of real-world asset tokenization for investor portfolios. WisdomTree is also exploring the provision of different on-chain services through a unified interface for its clients. The company aims to deliver the end value of being able to use money more effectively and earn higher returns compared to traditional banking services. As a prominent asset manager involved in Bitcoin exchange-traded funds (ETFs), WisdomTree brings its expertise and experience to Project Guardian, which focuses on exploring decentralized finance (DeFi) applications and asset tokenization in wholesale funding markets.
Overall, the financial industry is witnessing a shift towards industrializing proofs-of-concept developed within the blockchain experiment known as Project Guardian, with leading financial institutions like JPMorgan’s Onyx and WisdomTree heavily invested in real-world asset tokenization and decentralized finance applications. The main participants in Project Guardian are collaborating to assess the feasibility of DeFi and asset tokenization on a larger scale, focusing on developing open and interoperable networks, institutional-grade DeFi protocols, asset tokenization, and trusted infrastructure. Tokenized funds have gained popularity, with Moody’s reporting a significant increase in their value, driven by the rising tokenization of assets like U.S. treasuries and the inclusion of various assets on public and private blockchains. Additionally, companies like DigiFT and Misyon Bank are launching tokenized assets and partnering with firms to leverage digital asset custody and tokenization technology.
