It may be crypto winter, but traditional financial institutions remain and continue to influence the space, says Ava Labs President John Wu.
Ava Labs operates the Ethereum Avalanche sidechain, a smart contract platform built around sustainability and speed that houses cryptocurrency staking, lending and exchange services, including Sushi Swap and Nexo dapps . AVAX, up more than 9% over the last 24 hours, according to CoinMarketCapnow has a market cap of over $6 billion.
Wu said companies like JPMorgan Chase & Co. and Société Générale-Forge, a subsidiary of one of France’s largest investment banks, are examples of how financial institutions are still innovating during the crypto winter. and pave the way for wider adoption of crypto.
“Institutions trying to apply blockchain technology to streamline or re-tokenize real-world assets, their interest has absolutely not waned,” Wu said. Decryptat Avalanche House in Brooklyn.
JPMorgan already uses its own stablecoin, JPM Coin—backed 1:1 by the US dollar—as a tokenized form of US dollar deposits helping to facilitate transactions for institutional clients. Wu sees the project as a notable on-ramp for institutional investors looking to get into crypto.
He referenced JPMorgan’s recent efforts with the Monetary Authority of Singapore and DBS Bank Limited, the multinational banking and financial services company, to set up a DeFi project around wholesale lending to financial institutions.
“You have big, massive asset management companies looking to use blockchain and crypto to tokenize assets,” Wu added.
Wu also mentioned a recent approved measure by decentralized stablecoin issuer MakerDAO, which approved $30 million in DAI loans to Société Générale-Forge. The company will repay the loan by issuing “OFH Tokens“, a digitized version of the covered bonds backed by real estate loans and AAA rated by Fitch.
Currently, Ava Labs works with a range of institutional clients that “run the gamut,” Wu said, including asset management firms looking to use blockchain and crypto to tokenize assets and family offices looking to get involved from an investment perspective.
“It really goes up and down the spectrum,” he said. “The amount of stuff, for institutional purposes, has only increased.”
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