Markets Daily Crypto Roundup: How J.P. Morgan’s Connexus Approaches Blockchain Infrastructure
Release Date: May 21, 2025
Host: CoinDesk
Guest: Nikhil B. Sharma, Executive Director of Growth at Connexus Digital Assets
Introduction
In this episode of Markets Daily Crypto Roundup, CoinDesk brings listeners backstage at the Avalanche Summit in London. Host welcomes Nikhil B. Sharma, Executive Director of Growth at Connexus Digital Assets (formerly Onyx), to discuss J.P. Morgan's evolving approach to blockchain infrastructure and its rebranding efforts.
Connexus Digital Assets Rebranding and Blockchain Strategy
Timestamp: [00:26] - [01:49]
Nikhil Sharma details the recent rebranding from Onyx to Connexus, which occurred in November of the previous year. He emphasizes that the core structure, vision, and solutions remain unchanged. The rebrand signifies a renewed focus on enhancing the speed and certainty of money movement and settlements.
Nikhil B. Sharma [00:46]: "We continue to help our clients move money and move settlements faster with a lot more certainty, with a lot more control."
Connexus operates within J.P. Morgan's payments unit, integrating seamlessly with other business lines such as markets and security services. Sharma highlights the platform's capability to offer solutions like repos within as short as 30 minutes, attributing the name "Connexus" to the kinetic energy and connections driving their growth.
Client Participation in the Blockchain Ecosystem
Timestamp: [01:49] - [02:56]
Addressing client inquiries about participating in the blockchain ecosystem, Sharma explains that clients are already engaged through Connexus's private permissioned network. Over the past four years, Connexus has conducted experiments with Avalanche, including testing model portfolios and privacy solutions like Ever C.
Nikhil B. Sharma [02:05]: "Connexus Digital assets provides a secure institutional grade entry point into an ecosystem that we would connect to."
These initiatives represent steps toward Connexus's long-term vision of a secure and controlled entry into broader blockchain ecosystems, ensuring compliance and incremental adoption akin to traditional banking processes.
Engagement with the Avalanche Ecosystem
Timestamp: [02:56] - [04:34]
Host inquires about Connexus's perspective on the Avalanche ecosystem. Sharma responds by outlining two major experiments conducted with AVA Labs and AVA Cloud. The first focused on fund tokenization and cross-chain model portfolios, while the second explored privacy solutions aligned with their institutional privacy thesis.
Nikhil B. Sharma [03:09]: "We tested out Everse as one of the solutions. So that's sort of how we look at the Avalanche ecosystem now..."
These collaborations aim to integrate Connexus's products within specific markets and ecosystems, fostering a partnership with Avalanche to enhance blockchain infrastructure capabilities.
Financial Opportunities and Digital Asset Inclusion
Timestamp: [04:34] - [06:43]
The discussion shifts to the financial potential of digital assets, particularly in promoting financial inclusion. Sharma shares J.P. Morgan's perspective on utilizing digital assets to bring unbanked populations into the financial system. He emphasizes an incremental approach to adopting single, multiple, and universal ledgers.
Nikhil B. Sharma [05:25]: "We definitely believe in the technology... what we can enable, and at what scale."
Reflecting on a 2022 experiment involving trades on a blockchain within a DEFI protocol, Sharma underscores the importance of governance and compliance when integrating blockchain transactions into traditional banking frameworks.
Institutional Privacy Concerns in Blockchain
Timestamp: [06:43] - [09:48]
Host raises the topic of privacy, contrasting institutional needs with those of decentralized finance (DeFi) participants. Sharma elaborates on Connexus's comprehensive approach to privacy, addressing four key areas:
- Anonymity: Ensuring personal identifiable information (PII) remains off-chain.
- Confidentiality: Protecting transaction balances and ownership details from being exposed to large language models (LLMs) or similar tools.
- Selective Disclosure: Allowing users to control the extent of information shared.
- Auditability: Enabling authorized access to transaction information for auditing purposes without compromising overall privacy.
Nikhil B. Sharma [07:14]: "There is no one size fits all. There are several solutions, AVSC is one of them."
Connexus's collaboration with Avalanche Cloud involved integrating privacy-preserving digital identities and aligning them with institutional business flows, such as fund subscriptions and investor interactions. This ensures that privacy solutions are tailored to meet the stringent requirements of institutional clients while leveraging blockchain's benefits.
Conclusion
As the episode wraps up, Nikhil Sharma underscores Connexus Digital Assets' commitment to advancing blockchain infrastructure within J.P. Morgan's framework. By balancing innovation with institutional rigor, Connexus aims to facilitate secure, efficient, and scalable blockchain solutions for its clients.
Note: The advertisement segment starting at [09:59] has been excluded from this summary.