Wednesday, February 19, 2025

Kinexys by J.P. Morgan Explores Institutional On-Chain Privacy with AvaCloud

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KEY TAKEAWAYS

  • Kinexys by J.P. Morgan has released a whitepaper highlighting the importance of on-chain privacy and identity for institutional blockchain adoption.
  • AvaCloud Privacy Solutions, based on Avalanche, are identified as crucial for enhancing privacy and identity in tokenized finance.
  • The report emphasizes the use of zero-knowledge proofs and Distributed Homomorphic Encryption to ensure confidentiality and compliance in financial transactions.
  • AvaCloud’s solutions aim to revolutionize asset management by combining public and private blockchain strengths for secure data exchange.

Kinexys by J.P. Morgan, previously known as Onyx by J.P. Morgan, has released a whitepaper examining the current state of institutional on-chain privacy and identity. The report, titled ‘Project EPIC: Fueling Tokenized Finance with On-Chain Enterprise Privacy, Identity, and Composability,’ highlights Avalanche-based AvaCloud Privacy Solutions (APS) as a key component.

The whitepaper, authored by Kinexys Digital Assets and Kinexys Labs, evaluates working Proof-of-Concepts (PoCs) to assess the suitability of blockchain-based privacy solutions for institutional use. The focus is on the asset management industry, targeting institutional investors, fund managers, and transfer agents. AvaCloud’s tools demonstrated significant benefits, reinforcing Avalanche’s role in institutional blockchain adoption.

Key Findings from the Whitepaper

The report draws upon insights from Kinexys by J.P. Morgan’s previous Project Guardian, which showcased how blockchain technology, smart contracts, and tokenization could revolutionize asset and wealth management. A key outcome was the identification of privacy solutions and robust digital identity frameworks as essential for institutional adoption and scalability of tokenized funds.

AvaCloud, through its acquisition of EtraPay, has introduced advanced privacy technologies for institutions. These technologies aim to harness blockchain’s potential while safeguarding sensitive data. AvaCloud CEO Nicholas Mussallem stated, “Our privacy protocols represent a breakthrough in blockchain technology.” The solutions combine public and private blockchain strengths, enabling secure and private data exchange.

Use Cases and Technological Innovations

The PoC demonstrated three specific use cases: investor onboarding, capital deployment into funds, and secondary market trading. AvaCloud’s solutions utilized zero-knowledge (ZK) proofs and Distributed Homomorphic Encryption (DHE) to ensure confidentiality and compliance. The use of Distributed Identity (DID) further enhanced KYC/AML capabilities while maintaining necessary visibility for stakeholders.

In investor onboarding, Avacy protected sensitive data, ensuring confidentiality. For capital deployment, APS facilitated fund subscriptions without revealing investor identities. In secondary market trading, APS enabled private trading during on-chain auctions, using DHE for confidential execution.

Keerthi Moudgal, Head of Product at Kinexys Digital Assets, emphasized the importance of scalable, on-chain privacy and digital identity solutions for financial transformation. AvaCloud’s solutions demonstrated capabilities in driving blockchain-based asset management and capital markets forward.

For more information, the full report can be accessed here.


Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
Shree Narayan Jha
Shree Narayan Jha
Shree Narayan Jha is a tech professional with extensive experience in blockchain technology. As a writer for CoinsHolder.com, Shree simplifies complex blockchain concepts, providing readers with clear and insightful content on the latest trends and developments in the industry.

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