JPM (JP Morgan) is hopeful that it has searched for a way for DeFi (decentralized finance) developers. It wants to leverage the promising non-crypto assets. Tyrone Lobban, who heads JP Morgan’s Onyx Digital Assets, spoke to CoinDesk in Austin, Texas. He described the institutional-grade decentralized finance plans of the bank.
Lobban mentioned that with time, money shares of the market funds or tokenized the United States Treasuries means all these could be possibly used in decentralized finance pools as collateral. The bank’s ultimate aim is to transfer assets worth trillions of USDs into decentralized finance. It will help the bank use new techniques for lending, borrowing, and trending through the institutional assets scaling.
JP Morgan Shows More Interest in Digital Assets
Since 2021, JP Morgan has been showing interest to be more engaged in digital currency. It gave access to 6 crypto funds to the wealth management clients. The Grayscale Bitcoin Trust is a part of these funds.
The current year has seen digital currencies face an array of macroeconomic obstructions. Some of these are the war in Ukraine and inflation. These are difficult times when investors are considering selling off their assets as risky.
Since January this year, the digital currency space has seen the disappearance of a whopping 1 trillion. Top cryptocurrency assets, such as Bitcoin and Ether had a year-to-date sale of 38 percent and 48 percent respectively.
Also, the infamous crash of the stablecoin TerraUSD in May this year has given a boost to the bearish sentiment for digital assets. Many are wondering whether the world is amid a “crypto winter” or not. Surprisingly, investors of cryptocurrencies are getting tremendous support from JPMorgan Chase.
The strategies of the investment bank including Nikolaos Panigirtzoglou wrote in a note in the last week of May. They reinforced their faith in the leading digital asset of the world Bitcoin. The strategists added that they feel BTC has tremendous upside potential after the shocking fall. JPMorgan expects the use of finance in blockchain to go up with the growth in the crypto sector.
According to the global investment bank, they want to ensure that we are not only capable of lending out a helping hand but also be prepared to offer related services.