J.P. Morgan and Apollo Global's blockchain platform, Onyx, have announced a proof-of-concept in partnership with Avalanche as part of the Monetary Authority of Singapore's Project Guardian. The aim of this initiative is to transform asset and wealth management by utilizing blockchain, smart contracts, and tokenization to simplify portfolio management, particularly for traditionally challenging alternative assets.

The proof-of-concept links Onyx Digital Assets with an Avalanche Evergreen subnet through the LayerZero protocol. This Evergreen subnet is a specialized blockchain tailored to meet institutional requirements, focusing on network privacy, gas features, and permissioning.

Following this announcement, AVAX, the native token of the Avalanche blockchain, saw a 26% surge in the past 24 hours, reaching $22.69. The AVAX token gained over 142% in the past month amidst a market-wide rally.

The established infrastructure enables Onyx Digital Asset portfolios to access tokenized funds offered by WisdomTree, a New York-based asset manager valued at $94 billion. WisdomTree is also among the contenders seeking to introduce a spot Bitcoin ETF.

Tyrone Lobban, Head of Onyx Digital Assets, said:

“By leveraging the power of blockchain technology we have shown how the construction and management of discretionary portfolios could be revolutionized.”

John Wu, the President of Ava Labs, underscored that this initiative aligns with Ava Labs' mission to digitize and tokenize global assets, capitalizing on the speed, scalability, and adaptability of Avalanche.

Project Guardian, initiated by the Monetary Authority of Singapore in May 2022, explores use cases for asset tokenization in the financial industry.

Source : Yahoo Finance / Nov 16, 2023