Let’s discover more about this important news about the crypto initiative of JP Morgan, Onyx,
Onyx Can Bridge TradFi with DeFi
At the heart of JP Morgan’s initiative is the decision to leverage Avalanche’s blockchain infrastructure. This chain is known for its high throughput, low transaction fees, and interoperability. By choosing, JP Morgan aims to capitalize on the platform’s scalability and efficiency. These are crucial factors for handling the substantial volume of assets it plans to move daily.
JPMorgan Onyx CEO: We hope to move 5 to 10 billion USD a day on the blockchain within 2 years pic.twitter.com/V7roYMaPvx
— Digital Asset Summit 2024 (@blockworksDAS) November 16, 2023
The sheer magnitude of the assets involved in JP Morgan’s Onyx initiative is a clear signal that traditional financial giants are recognizing the potential of. The move to Avalanche is not only a strategic decision for JP Morgan but also positions Avalanche as a frontrunner in the race to become the go-to blockchain for institutional asset transfers.
One of the key aspects that make Avalanche an attractive choice for JP Morgan is its ability to handle smart contracts efficiently. Unlike some other blockchains that struggle with congestion and high fees when processing smart contracts, Avalanche’s consensus mechanism allows for quick and cost-effective execution. This feature is paramount for financial institutions seeking to streamline their operations and reduce transaction costs associated with asset movements.
More About Onyx’s Effects on Avalanche
The significance of JP Morgan’s daily asset movement plan cannot be overstated. To put it into perspective, the anticipated daily volume far exceeds the entire market capitalization of $AVAX at the time of this development. This massive injection of liquidity into the Avalanche ecosystem has the potential to attract additional institutional players, further bolstering Avalanche’s reputation as a blockchain capable of handling large-scale financial transactions.
Onyx by @jpmorgan@apolloglobal have announced a collaboration under Project Guardian, leveraging @LayerZero_Labs to connect Onyx with a permissioned Avalanche Evergreen Subnet, which facilitated subscriptions and redemptions for funds offered by @WisdomTreePrimepic.twitter.com/AjQtLNKCKG
— Avalanche ?? (@avax) November 15, 2023
Moreover, JP Morgan’s move to Avalanche represents a shift in the perception of blockchain technology within traditional financial institutions. Historically, some of these institutions have been cautious or skeptical about embracing cryptocurrencies and decentralized ledgers. However,initiative signals a departure from this cautious approach, indicating a growing recognition of the benefits that blockchain technology can bring to traditional finance.
The implications for the broader crypto community are substantial. As institutional players like JP Morgan integrate with blockchain networks like Avalanche. The ecosystem becomes more interconnected and robust. This integration not only validates the utility of blockchain technology. But also fosters an environment where traditional and crypto finance can coexist and collaborate.
The increased adoption of Avalanche by major financial institutions could lead to a snowball effect. Attracting more investors, developers, and businesses to the platform. This influx of interest and activity can create a positive feedback loop. Further enhancing Avalanche’s capabilities and solidifying its position in the competitive blockchain landscape.
What Financial Institutions are utilizing or testing as a DLT?
??Currently, major financial institutions are testing or utilizing the Evergreen Avalanche Subnets, to experiment or build blockchain-based financial products.
— House of Chimera (@HouseofChimera) November 18, 2023
JP Morgan’s Onyx initiative is poised to be a game-changer for crypto adoption on the Avalanche blockchain. The decision to move $5-10 billion of assets daily on Avalanche not only highlights the platform’s technical prowess but also underscores the growing synergy between traditional finance and the blockchain industry.
As JP Morgan paves the way, the crypto community eagerly anticipates the transformative effects this collaboration will have on Avalanche and the broader landscape of decentralized finance.
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.