Sandstone/Jameson partner, Oasis Pro, announces interoperability proof-of-concept.
By representing investor portfolios as smart contracts, and through tokenizing both fund assets and cash, we identified key potential benefits, including:
—‼️reducing 3000+ operational steps to 1 automated process for large wealth managers
—📉reducing portfolio level fees by ~20% as a result of reducing cash drag through faster, programmatic settlement
—💲enabling a $400Bn annual revenue opportunity for the broader AWM industry through the tokenization of alternative assets
Tyrone LobbanTyrone Lobban• 2nd• 2ndManaging Director, Head of Blockchain Launch & Onyx Digital Assets
J.P. Morgan’s Onyx Digital Assets, Apollo, Axelar, Oasis Pro and Provenance Blockchain Zones work together on interoperability proof-of-concept
November 15, 2023 02:00 AM Eastern Standard Time
SINGAPORE–(BUSINESS WIRE)–Axelar Inc., Oasis Pro and Provenance Blockchain have collaborated with Onyx by J.P. Morgan and Apollo under the Monetary Authority of Singapore’s Project Guardian,1 to demonstrate how blockchain technology could be used to manage large-scale client portfolios, execute trades and enable automated portfolio management of tokenized financial assets.
Within the POC, Onyx Digital Assets leveraged the Axelar network to enable interoperability with a private and permissioned Provenance Blockchain Zone. Oasis Pro enabled the tokenization of assets, such as Apollo funds, on the Provenance Blockchain Zone.
“Our goal is to create solutions that bring significant efficiencies and enable better outcomes for Asset & Wealth Managers and investors through personalized, highly scalable portfolios, regardless of asset class or where those assets are managed and recorded,” said Tyrone Lobban, head of Onyx Digital Assets. “The interoperability achieved through Project Guardian is a step forward in showing how tokenized traditional and alternative investments can be automatically managed across multiple systems.”
The POC, detailed in a report published this week at the Singapore FinTech Festival, is the latest step forward by J.P. Morgan’s Onyx Digital Assets and Apollo in advancing blockchain finance. In October, Onyx Digital Assets executed a groundbreaking on-chain transaction to convert money-market shares into digital collateral for transfer between counterparties in an over-the-counter derivatives trade. Last year, Apollo launched a digitally native investment vehicle to demonstrate how blockchain technology could support on-chain fund subscriptions, ongoing fund operations and fund administration for private funds.
Provenance Blockchain, meanwhile, has supported over $16B in transactions, and currently has $9B in real-world financial asset value locked on-chain, including funds, loans and private equity. Purpose-built for financial services, Provenance Blockchain is in use with more than 70 financial institutions and has played a key role in several financial-services firsts, including the first blockchain-native consumer loans, first asset-backed securitization on blockchain and the first bank-minted tokenized deposits in the United States.
“J.P. Morgan and Apollo’s use case is exactly why we designed interoperable private and permissioned Provenance Blockchain Zones,” shared Anthony Moro, Provenance Blockchain CEO. “With the support of Axelar and Oasis Pro, J.P. Morgan and Apollo demonstrated how portfolios could be rebalanced and trades executed between Onyx Digital Assets and Provenance Blockchain. This is believed to be a first-of-its-kind blockchain interoperability solution for institutional financial services.”
“Successfully delivering the solutions for portfolio rebalancing is a critical step in the evolution of traditional asset-management functions. This next generation of technology will increase speed and efficiency across legacy systems. Oasis Pro is extremely proud of our work with these amazing companies in this groundbreaking partnership,” said Pat LaVecchia, CEO of Oasis Pro.
Axelar network connects 50+ chains over a decentralized cross-chain network that provides decentralized security and permissionless programmability. Increasingly, large enterprises are looking to Axelar network to integrate off-chain systems with on-chain networks, as well. For this POC, Axelar Inc. helped deploy private instances of the Axelar blockchain to meet requirements.
“For Axelar network, interoperability doesn’t stop at the borders of any blockchain,” said Sergey Gorbunov, CEO of Axelar Inc. “Public blockchains provide fast finality and transparency, and these attributes can be difference-makers in hybrid systems that integrate real-world assets (RWAs) as well as private blockchains and off-chain systems. Axelar network connects all with robust security and programmability that automates away developer overhead and delivers world-class user experience.”
Axelar is the full-stack interoperability layer for Web3. The network enables blockchain as a new kind of development platform, integrating diverse networks into a seamless “Internet of blockchains.” Axelar is programmable and decentralized, secured by a proof-of-stake token, AXL. Application users access any digital asset or application, with one click. Developers work with a simple API and access an ecosystem of tools and service providers.
More about Axelar: axelar.network.
About Provenance Blockchain
Provenance Blockchain is modernizing financial services with properly permissioned, public blockchain technology. Since 2018, leading banks, asset managers and fintechs have leveraged the purpose-built Provenance Blockchain to deploy assets cheaper, faster and safer than ever before. Provenance has become one of the world’s largest blockchain networks with over $9 billion of financial assets under administration and $16 billion in supported transactions, as of September 30, 2023.
The decentralized Provenance Blockchain is built with Cosmos SDK and uniquely balances open-source innovation, with the added benefit of institutional-grade risk and control functions built-in to the protocol. The native utility token, HASH, is used to pay transaction fees and enable governance. Please visit Provenance Blockchain at Provenance.io and follow us on Twitter @provenancefdn and on LinkedIn.
About Oasis Pro
Oasis Pro is a global fintech infrastructure provider for real-world assets and digital securities. Leveraging our deep Wall Street and blockchain expertise we provide end to end solutions to bridge traditional finance from Web2 to Web3. Oasis Pro provides a holistic multi-asset trading platform solution for both public and private tokenized securities using digital cash or fiat. Oasis Pro’s subsidiary, Oasis Pro Markets, is a FINRA member firm that operates a multi-asset alternative trading system (ATS), OATSPRO, to allow primary issuance and trading of public and private multi-asset digital securities as well as a full-service investment bank. Learn more at www.oasispro.com. Securities are offered through Oasis Pro Markets, Member FINRA/SIPC.
1 Project Guardian is the Monetary Authority of Singapore’s collaborative initiative with the financial industry, seeking to test the feasibility of applications in asset tokenization and decentralized finance while managing risks to financial stability and integrity. Learn more here.