JP Morgan's Crypto Strategy Includes Trillions Of Dollars Investment


JP Morgan believes it has discovered a mechanism for decentralised finance

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(DeFi) developers to take advantage of non-crypto assets' yield-generating potential.

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Tyrone Lobban, the head of JPMorgan's Onyx Digital Assets, spoke to CoinDesk at Consensus 2022 in Austin, Texas,

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about the bank's institutional-grade DeFi aspirations and how much value is waiting in the wings in tokenised assets.

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Institutional DeFi means enforcing know-your-customer standards on crypto's

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permissionless lending pools, as demonstrated by Aave Arc and a recently

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announced collaboration with Siam Commercial Bank and Compound Treasury.

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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.

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"The overall goal is to bring these trillions of dollars of assets into DeFi so that we can use these new mechanisms for trading,

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