JP Morgan Plans to Allow Third Parties Deploy Apps on Onyx

In a recent development, investment banking firm, JP Morgan has revealed that it intends to make its blockchain solution Onyx available to third parties, allowing them to deploy applications. At the Tokenize This conference, Stephanie Lok, a product manager at Onyx disclosed that the blockchain has now processed over $1 trillion notional transactions.

Third Parties Can Now Build Tokenized Assets on JP Morgan Blockchain

With its blockchain-based solution, JPM Coin Systems is the most well-known Onyx service. Moreover, Onyx Digital Assets, the area in which it hopes to collaborate with other parties, is the focus of a distinct section within the company. This development is a component of JPMorgan’s larger plan to use blockchain technology to enhance its operations and services.

The bank hopes to promote growth and innovation in the blockchain industry by making Onyx available to third parties. Consequently, asset management might become more streamlined and secure with the tokenization of assets on the blockchain, offering a more dependable and effective method.

Recall that in 2020, JP Morgan established Onyx digital financing with Goldman Sachs involved around the end of 2020. With BlackRock and Barclays as partners, it debuted its Tokenized Collateral Network last year. Since its launch, the blockchain solution has experienced impressive growth, translating to the aforementioned number of transactions processed. Last week, the debt servicing offering by Onyx Digital was launched, issuing a blockchain-based municipal bond by Quincy City in Massachusetts.

Onyx Digital will Fund Tokenization

Meanwhile, JP Morgan is currently focusing on moving its proofs of concept (PoCs) into live products. In a report shared last year, JP Morgan revealed the result of Project Guardian, an asset and wealth management solution with Apollo and WisdomTree, which was discussed today at the Tokenize This conference.

Ms Lok said that as a first step, Onyx by JP Morgan is “working with a fund manager, distributor, (and) fund admin to really tokenize an alternative investment fund to see what that could look like.” The objective is to diversify the returns on alternative investments, even though not all alternative investment funds are suitable for every situation.

In response to a question thrown at her about the biggest tokenization challenge, Ms Lok pointed to the common standardization and blockchain interoperability issues. Nevertheless, Onyx’s main goal is to advance beyond proofs of concept and show ROI by introducing production solutions.