The bank plans on eventually including money market fund shares and other assets as well, as collateral in its DeFi pools.
The Decentralized Finance (DeFi) space is finding use in the mainstream bank market as well, with JPMorgan planning to leverage DeFi protocols to generate more profit out of non-crypto assets.
Firstly discussing their Crypto Strategy during the CoinDesk Consensus 2022, the Head of Onyx Digital Assets at JPMorgan, Tyrone Lobban, stated that the bank has institutional-grade DeFi Plans, which include trillions of dollars worth of tokenized assets it will be making use of.
Iterating the same, Tyrone said,
“Over time, we think tokenizing US Treasurys or money market fund shares, for example, means these could all potentially be used 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, borrowing [and] lending, but with the scale of institutional assets.”
In addition to this, the bank will also include tokenized versions of investment management corporation BlackRock’s money market fund shares.
These are basically mutual funds invested in cash and highly liquid short-term debt instruments.
In the past, too, the bank has commented on the future of Crypto, DeFi, and web3 and where it could end up.
As reported by FXEmpire, a few months ago, JPMorgan had predicted that the Metaverse could become a $1 trillion market based on the growth of its individual components, including the price of a parcel of virtual land, strategic partners as well as NFTs.
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