JP Morgan and Apollo Global partnered on a blockchain proof of concept (PoC), as part of the Monetary Authority of Singapore’s (MAS) Project Guardian tokenization trials. By tokenizing funds, including alternatives, its possible to automate and personalize the discretionary portfolios of wealthy clients, a $5.5 trillion space.
Additionally, the PoC tested interoperability, linking JP Morgan’s Onyx Digital Asset platform in a private environment to permissioned layers of public blockchains. These included the Cosmos based Provenance Blockchain and an Ethereum compatible subnet on the Avalanche blockchain.
To date much of the emphasis in fund tokenization has been on the ability to expand the client base, improving liquidity. This PoC covers that because tokenization enables alternative assets to be included in portfolios more easily alongside publicly traded assets. JP Morgan and Apollo estimate this could be a $400 billion revenue opportunity for alternative fund managers (such as Apollo) as well as distributors.
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