JPMorgan and DBS Bank Choose Polygon PoS for Tokenizing Singapore Assets

• Major funds like Brevan Howard and Hamilton Lane are launching dedicated Real World Asset (RWA) chains like Libre within the Polygon ecosystem.
• Notable achievements also include the tokenization of private credit funds and US-registered mutual funds on Polygon PoS.

In a notable development, BlackRock CEO Larry Fink has characterized the recent ETF approvals as “stepping stones toward tokenization,” emphasizing the growing momentum in this direction. Several institutions have been actively participating in this transformative process on Polygon networks.

Prominent funds such as Brevan Howard and Hamilton Lane have joined forces with @librecap to leverage Polygon CDK for the launch of Libre. Libre represents a dedicated Real World Asset (RWA) chain within the Polygon ecosystem, catering to specific investors and asset managers seeking access to tokenized investment funds.

The landmark ETF approvals this week are “stepping stones toward tokenization,” BlackRock CEO Larry Fink said Friday on CNBC.

Institutions have already been building these stepping stones on Polygon networks.

Just last week, leading funds Brevan Howard and Hamilton Lane are… pic.twitter.com/1yT1BM0QaO

— Polygon (Labs) (@0xPolygonLabs) January 15, 2024

The trend of institutional engagement with tokenization on Polygon networks began last year, in January 2023, when @Hamilton_Lane opted to utilize @Securitize’s tokenization platform on Polygon PoS. This move further enabled investors to gain tokenized exposure to the first-ever private credit fund fully on-chain.

Subsequently, in April, @FTI_US achieved a milestone by becoming the first US-registered mutual fund to tokenize its OnChain U.S. Government Money Market Fund (FOBXX) on Polygon PoS.

November 2022 also witnessed a significant development with Project Guardian, as JPMorgan and Singapore’s DBS Bank selected Polygon PoS as the preferred network for tokenizing Singapore government securities, the Singapore dollar, and Yen.

The noteworthy aspect is that tokenization on public blockchains has transitioned from a theoretical concept to a tangible reality on the mainnet, with genuine institutional adoption. Polygon PoS stands out as the preferred entry point for institutions, effectively bridging the gap between web3 and traditional finance (TradFi).

Key Developments Within Polygon Ecosystem

Recently, Polygon Labs provided an update on the advancements of Polygon zkEVM, signaling the imminent shift to Stage 2 of its Mainnet Beta. The announcement, communicated through a post on X, details the progress of this cutting-edge technology and outlines the roadmap for the months ahead.

Short for zero-knowledge Ethereum Virtual Machine, Polygon zkEVM utilizes zero-knowledge proofs to enhance the efficiency of transactions on the Ethereum network. Through the implementation of zk-rollups, Polygon zkEVM can process numerous transactions off-chain before consolidating them into a single proof for submission to the Ethereum mainnet.

Furthermore, Polygon’s NFT Ecosystem experienced significant growth in the early months of 2024, witnessing NFT sales surpassing $36 million in the past week alone. This noteworthy achievement represents a remarkable threefold surge compared to the previous period, marking Polygon’s most impressive performance in the NFT sector since August 2023. This expansion underscores Polygon’s escalating influence and competitiveness within the dynamic NFT market.

Polygon’s native cryptocurrency MATIC has witnessed a strong price correction amid a drop in the broader crypto market. At press time, the MATIC price is trading 0.85% down at $0.85 with a market cap of $8.12 billion. One positive trigger to watch for is the drop in the MATIC supply on the exchanges.

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