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Gungun Bhatia
Nov 2, 2022
by Gungun Bhatia

Singapore Uses Polygon and Aave in Initial DeFi Wholesale Markets Deal

Singapore Polygon Aave

Table of contents

  1. MAS, JPMorgan, DBS Bank to Use Liquidity Pools
  2. Collaboration of DBS and OGP
In a pilot exploring the potential of DeFi applications in wholesale finance markets, the Monetary Authority of Singapore (MAS) completed a cross-currency transaction involving tokenized Japanese yen and Singapore dollar deposits. According to a tweet by Ty Lobban of JPMorgan, the global investment firm utilized Polygon first to choose Ethereum because of its cheap fees, which were required to lower operating expenses related to verification. It then installed a customized version of Aave Arc in order to deploy specified parameters, leveraging the notion of the permissioned pool from Aave.

MAS, JPMorgan, DBS Bank to Use Liquidity Pools

According to a statement from MAS, JPMorgan, DBS Bank, and SBI Digital Asset Holdings engaged in foreign currency and treasury bond transactions using liquidity pools made up of Singapore dollars, tokenized yen, and Singapore Treasury Securities Bonds.

Standard Chartered (STAN) is leading the first pilot, which will examine the use of tokens for financial transactions, and another pilot, which will test the tokenization of wealth management services. HSBC (HSBC), UOB, and Marketnode, a platform for digital assets developed by the Singapore Exchange (SGX) and Temasek, are participating in the wealth management experiment. According to MAS Chief Fintech Officer Sopnendu Mohanty, the ongoing experiments performed by market players illustrate that with the proper safety barriers in place, digital assets, and decentralized finance have the potential to change capital markets.

Collaboration of DBS and OGP

MAS comes on the heels of a report on Monday stating that DBS and Open Government Products, a technology team inside the Singaporean government, are collaborating to establish a live trial for issuing of purpose-bound money-based vouchers that are issued employing tokenized Singapore dollars on a blockchain.

In an interview, DBS's group head of planning and strategy Han Kwee Juan, discussed how the banks utilize DeFi to conduct conventional financial transactions. Han stated that the company intended to demonstrate that it was feasible to tokenize cash and government securities within a DeFi liquidity pool. The company also wanted to establish an organizational DeFi environment that regulators would be comfortable utilizing an AMM and accounting for that using pricing oracles and market information streaming services.

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DeFi JPMorgan Monetary Authority of Singapore (MAS) DBS Bank Polygon
Singapore Uses Polygon and Aave in Initial DeFi Wholesale Markets Deal
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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