Ultra-efficient portfolios of traditional and alternative investments powered by tokenization
Onyx by J.P. Morgan and Apollo Global Management have unveiled a proof-of-concept (PoC) under the Monetary Authority of Singapore‘s Project Guardian. This initiative, detailed in J.P. Morgan’s “Future of Wealth Management” report, sets out to transform the asset and wealth management industry by introducing ultra-efficient portfolio management at scale, utilizing the power of blockchain, smart contracts, and tokenization.
The PoC demonstrates how blockchain technology can streamline portfolio management, particularly for traditionally challenging assets like private alternatives. Key to this transformation is the LayerZero protocol, valued at $3 billion, facilitating the connection between Onyx Digital Assets and an Avalanche Evergreen subnet. This subnet, designed for institutional use, ensures network privacy, gas features, and permissioning are tailored to the needs of large-scale operations.
The collaboration includes WisdomTree Asset Management, a leading asset manager and pioneer in fund tokenization. Onyx Digital Assets leveraged interoperability protocols, connecting with the Avalanche Evergreen Subnet, allowing seamless subscriptions and redemptions for funds offered by WisdomTree.
Tyrone Lobban, Head of Onyx Digital Assets, emphasized the significance of this initiative, stating, “Our work under Project Guardian demonstrates a significant opportunity for the asset and wealth management industry.”
The PoC brings several key learnings, offering benefits such as the inclusion of alternative assets in discretionary portfolios, efficiency and scalability improvements, broadening the investable universe with ledger interoperability, and enhancing the blockchain user experience.
This collaborative effort marks a pivotal step forward, showcasing the potential of blockchain and tokenization in revolutionizing wealth management practices. As the industry continues to evolve, stakeholders are urged to explore and contribute to the transformative concept introduced by Onyx and Apollo Global.
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