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Axelar has partnered with JPMorgan's Onyx and others to deliver "Project Guardian": a next-generation proof-of-concept for managing a $55 trillion investment portfolio.

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By utilizing Axelar, Onyx, a subsidiary of JPMorgan, is able to introduce composability and programmability into portfolio management, enabling modular rebalancing across 100 portfolios through automation.

Source: Axelar

Axelar, in collaboration with J.P. Morgan's Onyx, Provenance, and Apollo, has launched a proof-of-concept demonstration that showcases a solution for portfolio managers to leverage tokenized funds on the blockchain to compose investment portfolios and purchase and rebalance positions of tokenized assets across multiple interconnected blockchains.

As a leading interoperable cross-chain infrastructure connecting over 50 blockchains, Axelar has now become an emerging hybrid of centralized finance (CeFi) and decentralized finance (DeFi) in the world. It has successfully collaborated with Onyx and Apollo, the digital asset platforms under JPMorgan, to experiment with how smart contracts can be used to manage customer investment portfolios on a large scale. In the proof-of-concept, blockchain technology was used to execute transactions and achieve automated investment portfolio management of tokenized financial assets (real-world assets or RWAs).

Since the mainnet launch in 2022, Axelar (AXL) has completed over $6 billion in cross-chain transfers through its cross-chain protocol and network of 53 chains, using a secure and programmable network. The integration of off-chain systems and on-chain networks has been achieved through a hybrid system.

One of the most innovative parts of the proof of concept is that a portfolio manager can change the investment model by replacing an Apollo private equity fund, and use the rebalancing module to automatically rebalance 100 portfolios that follow this strategy, including order placement and settlement activities. This unique blockchain feature increases market composability and automation efficiency, while significantly reducing human errors.

This concept validation collaboration is part of the Monetary Authority of Singapore's "Project Guardian" and aims to standardize the settlement process for transactions on interoperable blockchains.

The head of Onyx, JPMorgan's digital asset platform, Tyrone Lobban, tweeted: "We demonstrated a model that uses smart contracts, tokenized assets, and programmatic connections to automatically and quickly rebalance investment portfolios - whether they contain traditional assets, alternative assets, or use multiple ledgers." "There is now a lot of discussion about cross-chain tokenization of 'real world' assets, which is causing fragmentation of liquidity and experience. Therefore, we are exploring how to use interoperable solutions across EVM and non-EVM chains to solve this problem."

Morgan Stanley's Onyx utilizes Axcela's cross-chain technology to achieve interoperability with Provenance Blockchain's private permissioned chain, supporting asset tokenization, including the Apollo Fund. Provenance has locked up $9 billion worth of real-world financial assets (RWA) on the chain.

Axelar CEO Sergey Gorbunov said: "By using Axelar, Onyx, a subsidiary of JPMorgan, can introduce composability and programmability into portfolio management, and achieve modular rebalancing across 100 portfolios through automation. This is a strong example of the potential for blockchain interoperability."

This week, a report released at the Singapore FinTech Festival provided a comprehensive description of POC.

To learn more information, please visit www.axelar.network or join Axelar Discord.