The blockchain arena is getting a big boost from financial giant JPMorgan, which recently completed its first cross-border transaction using the technology that’s become so prominent in the crypto space.
JPMorgan Is Giving Defi a Real Boost
The transaction occurred in the decentralized finance (defi) arena, thus bringing one of the world’s largest monetary institutions to the world of autonomous banking. The move is being hailed as a real clincher for digital currency, and many believe this will push the space to new heights and broader levels of mainstream attention.
JPMorgan utilized Polygon to perform the transaction. Polygon is a blockchain system based on Ethereum technology. It’s a modified version of AAVE and is designed to help ETH scale while giving traders the opportunity to lend and borrow digital funds without the aid of third parties.
Mikkel Morch – chairman at the digital asset hedge fund ARK36 – commented in a recent interview:
Crypto enthusiasts have never doubted that innovation coming out of this space (especially innovation in defi) has the potential to make international banking cheaper, faster, and more efficient. Now, the giants of traditional finance are starting to confirm that by using defi protocols as a viable solution for streamlining international monetary trade.
The irony of the situation is that JPMorgan has not always been kind to crypto. It’s head executive Jamie Dimon has been a very vocal critic of bitcoin and other digital assets in the past. As recently as two months ago, Dimon said:
I’m a major skeptic of crypto tokens, which you call currency, like bitcoin. They are decentralized Ponzi schemes, and the notion that it’s good for anybody is unbelievable. It is dangerous.
At the same time, his company has never hesitated to get involved in the crypto space, thus suggesting that while Dimon himself isn’t a fan, he recognizes there’s money to be made and business to be had in the future. A few years back, the company unveiled its very own digital asset and described it as such:
It can be moved just the way cryptocurrencies can be moved. Stable value, very low cost.
Marcus Sotiriou – an analyst at digital asset broker Global Block – expressed his surprise that JPMorgan of all companies would be the one to engage in such a transaction. He commented:
It’s a bit surprising to see JP Morgan at the forefront of this trend given how critical the bank’s CEO has been of the cryptocurrency space. But as the adage goes, actions speak louder than words.
Singapore Is Now Exploring Defi
The event was overseen by the Monetary Authority of Singapore (MAS), which has recently unveiled a pilot program through which the company will explore defi applications for wholesale funding markets.
Many believe this is the first step towards bridging the gap between standard banking and crypto.
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