Major Wall Street investment bank JPMorgan is moving to underpin traditional financial assets despite last year’s market downturn.
According to Tyrone Lobban, head of JP Morgan’s digital asset and tokenization platform Onyx, the bank has already processed about $700 billion in short-term loans on Onyx, with more to come in the near future.
“We think tokenization is a killer app for traditional finance,” Loban was quoted as saying in a CoinDesk Interview This week, while adding:
“If you think about the private markets – private debt, private equity and private real estate – they are pretty much double the size of the public markets, but many orders of magnitude less liquid, so it’s a huge disparity,”
a temporary setback
Despite his optimism about the future, Lobban admitted in the interview that the Onyx team felt firsthand the effects of the regulatory crackdown in the US along with the crypto market downturn, and said that a little more than expected is putting things into play. It may take time. ,
“The timing may be a little longer than before, but our strategy hasn’t changed at all,” Lobban said.
He said the recent shocks matter little in the long term.
“In any case, there is a lot to be done that these kinds of momentary lows are actually very minor over the long term. We’re fortunate that we have the resources to be able to really deliver on these very large use cases, and if we can help bring more clarity to regulators and help them understand the value, that’s only A good thing,” said JP Morgan’s Lobban.
is a permitted version of onyx Ethereum A blockchain built by JP Morgan for use between various banking partners.
The platform has so far been mainly used to conduct transactions in the so-called repo (repurchase) market, a market where institutions can borrow assets for short-term funding needs.
Banks known to have joined JP Morgan’s platform include Goldman Sachs (GS), BNP Paribas and DBS Bank, while several other banks and financial institutions are considering signing up.
When it first emerged in May last year that JPMorgan was serious about its token plans, some in the crypto community said the fact that the bank was showing off its enterprise blockchain projects was interpreted as a can be seen in “Fire Signs We’re in a Bear Market.”
In addition to being Onyx, JPMorgan is famous in crypto circles for launching its own centralized Digital token known as JPM coin All the way back in 2019.