JP Morgan's Crypto Strategy Includes Trillions Of Dollars Investment
JP Morgan believes it has discovered a mechanism for decentralised finance
(DeFi) developers to take advantage of non-crypto assets' yield-generating potential.
Tyrone Lobban, the head of JPMorgan's Onyx Digital Assets, spoke to CoinDesk at Consensus 2022 in Austin, Texas,
about the bank's institutional-grade DeFi aspirations and how much value is waiting in the wings in tokenised assets.
Institutional DeFi means enforcing know-your-customer standards on crypto's
permissionless lending pools, as demonstrated by Aave Arc and a recently
announced collaboration with Siam Commercial Bank and Compound Treasury.
Mr Lobban said they believed that tokenising US Treasurys or money market fund shares would allow them to be utilised as collateral in DeFi pools.
"The overall goal is to bring these trillions of dollars of assets into DeFi so that we can use these new mechanisms for trading,