Aptos Labs, a startup formed by former Meta Platforms Inc. employees who were involved in the Diem blockchain project, has unveiled its collaboration with industry giants Microsoft and SK Telecom. This collaboration aims to develop Aptos Ascend, a digital asset management platform tailored for financial institutions.

Aptos Labs operates as a Layer 1 blockchain, positioned to facilitate digital asset trading and transactions on a large scale. Positioned as a contender to established blockchain ecosystems like Ethereum, Aptos Ascend offers a suite of solutions designed specifically for institutional finance. It includes permissioned digital asset controls, empowering businesses to leverage tokenization and blockchain-based security measures.

The development of Aptos Ascend saw collaboration with Microsoft Corp., SK Telecom Co. Ltd., and hedge fund management firm Brevan Howard. This partnership amalgamates various technologies to fortify the blockchain-enabled institutional service. Microsoft Azure and Azure OpenAI Service contribute artificial intelligence capabilities, complemented by Brevan Howard’s investment expertise. SK Telecom’s regulatory-compliant blockchain wallet-as-a-service technology ensures swift deployment without compromising on compliance standards, including "Know Your Customer" and anti-money laundering measures mandated by local jurisdictions.

Mo Shaikh, co-founder and CEO of Aptos Labs, emphasized the necessity for global institutions to uphold superior levels of compliance, security, and innovation to cater to customers and navigate regulatory landscapes. Aptos Ascend aims to provide financial institutions with a robust gateway to decentralized finance, underpinned by performance, compliance, security, and scalability.

Aptos Labs enlisted Boston Consulting Group Inc. as its preferred consulting partner to collaborate with customers in implementing decentralized finance, digital assets, and AI solutions. The selection of BCG was based on its proven expertise in these domains.

The collaboration between Aptos Labs and Microsoft in August led to the beta launch of Aptos Assistant, a chatbot designed to provide insights into blockchain technology and programming. This collaboration also paved the way for further exploration of blockchain-enabled solutions, including digital asset tokenization and decentralized finance.

Adrian Crockett, GM and head of product at Microsoft Cloud for financial services, highlighted the significant opportunities arising from the convergence of AI and distributed ledger technologies.

Ascend offers financial institutions a secure environment for transactions involving digital asset tokens, including cryptocurrencies and tokenized securities. Advanced confidentiality measures, such as zero-knowledge proofs, safeguard account information, while programmable smart contracts streamline transaction execution based on predefined conditions. This ensures reliable processing and maintains a comprehensive, auditable trail stored on the blockchain.

SK Telecom's Vice President and Head of Web3, Oh Se-hyeon, expressed optimism regarding the partnership's potential to drive innovation in the future financial market, particularly with the growing trend of tokenization in traditional finance.