JPMorgan files to launch new tokenized fund as Wall Street tokenization race heats up
Key takeaways
- Securities and Exchange Commission SEC) outlined plans for a blockchain-based money-market fund investing exclusively in short-term U.S.
- The underlying blockchain infrastructure will be operated by Kinexys Digital Assets, JPMorgan’s blockchain unit formerly known as Onyx.
- The fund is structured to satisfy reserve asset requirements under the GENIUS Act, legislation aimed at regulating stablecoin issuers in the U.S.
Treasury money-market fund on Ethereum.The fund, dubbed JPMorgan OnChain Liquidity-Token Money Market Fund, is designed to meet reserve requirements for stablecoin issuers under the GENIUS Act.The move adds to Wall Street asset managers' growing push into tokenized real-world assets.JPMorgan (JPM) is preparing to launch a tokenized money market fund, the latest sign that major financial institutions and Wall Street asset managers are speeding up efforts to move traditional assets onto blockchain rails.
A Tuesday filing with the U.S. Securities and Exchange Commission SEC) outlined plans for a blockchain-based money-market fund investing exclusively in short-term U.S. Treasuries, cash and overnight repo agreements backed by government securities.
The fund, dubbed JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX), will maintain blockchain-based token balances tied to investors' ownership records, allowing approved users to submit purchase, redemption and transfer requests through Ethereum, the filing said. The underlying blockchain infrastructure will be operated by Kinexys Digital Assets, JPMorgan’s blockchain unit formerly known as Onyx.