- Wall Street financial institutions, including JPMorgan’s Onyx, are focusing on industrializing blockchain proofs-of-concept (PoCs) developed through Project Guardian.
- Onyx is particularly interested in investment fund tokenization, aiming to convert insights from its pilot program with the Monetary Authority of Singapore into tangible products.
- Asset manager WisdomTree is also heavily invested in blockchain-enabled finance, with interests in portfolio personalization, real-world asset tokenization, and the integration of various financial services into a single application.
Wall Street giants, including JPMorgan’s Onyx and WisdomTree, are focusing on industrializing blockchain proofs-of-concept (PoCs), with a particular interest in investment fund tokenization and real-world asset tokenization.
JPMorgan’s Onyx Eyes Industrializing Blockchain PoCs
Leading financial institutions on Wall Street, including JPMorgan’s blockchain platform Onyx, are focusing on industrializing proofs-of-concept (PoCs) developed through Project Guardian. Onyx is particularly interested in investment fund tokenization, aiming to convert insights from its pilot program with the Monetary Authority of Singapore into tangible products. Stephanie Lok, product manager of JPMorgan’s Onyx, stated at the TokenizeThis event in Miami that the company is focused on how they can “productionize, industrialize what we built out as a proof-of-concept.”
WisdomTree’s Interest in RWA Tokenization
WisdomTree, an asset manager, is another traditional firm heavily invested in blockchain-enabled finance. The company is interested in portfolio personalization and blending portfolios with checking accounts. WisdomTree is exploring the provision of different on-chain services through a unified interface for its clients, aiming to integrate various financial services, including tokenized portfolios and traditional banking services, into a single application. The company is also a participant in Project Guardian, an initiative launched in May 2022 to explore decentralized finance (DeFi) applications and asset tokenization in wholesale funding markets.
Popularity of Tokenized Funds on the Rise
In a report earlier this year, Moody’s revealed the value of tokenized funds surged from $100 million at the beginning of 2023 to approximately $800 million, driven by the rising tokenization of U.S. treasuries. The report highlighted that both public and private blockchains are witnessing the inclusion of various assets. 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 ETF, and UBS Asset Management deploying a tokenized money market fund (MMF) on the Ethereum blockchain.
Conclusion
Wall Street giants, including JPMorgan’s Onyx and WisdomTree, are increasingly focusing on industrializing blockchain PoCs, with a particular interest in investment fund tokenization and real-world asset tokenization. The rise in the value of tokenized funds, driven by the tokenization of U.S. treasuries, indicates a growing interest and acceptance of blockchain technology in the financial sector. As these institutions continue to explore and invest in blockchain technology, the future of finance could see further integration of traditional financial services with blockchain-enabled services.
