JPMorgan and Apollo Executives Reveal Plans for Tokenized Enterprise Mainnet

According to Cointelegraph, executives from JPMorgan Chase and Apollo Global Management have unveiled plans for a tokenized 'enterprise mainnet' developed during their collaboration on the Monetary Authority of Singapore's (MAS) Project Guardian pilot project. On November 15, MAS introduced five additional industry pilots to Project Guardian to test various use cases around asset tokenization, with participation from 17 member financial institutions, including JPMorgan and Apollo. The two companies collaborated to test digital assets for more seamless investment and management of discretionary portfolios and alternative assets, automated portfolio rebalancing, and customization at scale. In a Forbes interview, Christine Moy, partner at Apollo Global Management, explained how production-grade tokenization helped create intraday repo, JPMorgan's new tradable product. Tyrone Lobban, the lender's blockchain head, revealed that the new system has already processed over $900 billion in assets, adding, 'There was actually no intraday repo market before this, and now we're settling around $2 billion a day of intraday repo trades through our platform.' According to Moy, the system performs as an enterprise mainnet, and she sees it as having a first-mover advantage in the race for offering tokenized investment instruments. The 'enterprise mainnet' provides the scalability to add applications to a network with an existing Know Your Customer (KYC)-compliant set of institutional banks, broker-dealers, and asset managers. Through Project Guardian, financial institutions are working out the ideal software stacks that could accommodate agnostic interoperability across different pools of assets. On November 24, MAS laid down measures for Digital Payment Token (DPT) service providers to discourage speculation in cryptocurrency investments. Determining customers' risk awareness, refusing credit card purchases, and providing no incentives are some of the ways MAS asked DPT service providers to help retail clients avoid price speculation.