JPMorgan Launches $100M Tokenized Fund on Ethereum: WSJ
JPMorgan Chase has rolled out a non-public tokenized cash market fund on the Ethereum blockchain, seeding the product with $100 million of its personal capital and opening it to certified buyers via its asset-management arm.
The launch reveals how one in every of Wall Street’s largest banks is shifting conventional money merchandise onto public blockchains as shopper demand for on-chain yield and sooner settlement retains rising.
JPMorgan Expands Tokenization Push with MONY Fund
According to a report by the Wall Street Journal, the brand new car, known as the My OnChain Net Yield Fund, or MONY, is JPMorgan Asset Management’s first tokenized cash market fund and is supported by the financial institution’s Kinexys Digital Assets platform. The fund is offered to people with not less than $5 million in investments and establishments holding a minimal of $25 million, with a $1 million entry requirement.
Investors can subscribe via JPMorgan’s Morgan Money portal and obtain digital tokens representing their fund shares in a crypto pockets. Subscriptions and redemptions could be made utilizing money or USDC, the dollar-linked stablecoin issued by Circle. Like conventional cash market funds, MONY holds short-term debt devices and accrues earnings day by day.
John Donohue, JPMorgan Asset Management’s head of worldwide liquidity, stated that shopper curiosity round tokenization has grown sharply for the reason that passage of the Genius Act earlier this yr, which created a clearer U.S. framework for stablecoins and tokenized {dollars}.
How JPMorgan Fits right into a Broader Industry Shift
JPMorgan’s transfer follows a collection of comparable launches by main asset managers in search of to mix blockchain rails with acquainted monetary merchandise. In July, Goldman Sachs and BNY Mellon stated they might work collectively on digital tokens tied to cash market funds managed by companies together with BlackRock and Fidelity.
Outside the U.S., Europe’s largest asset supervisor, Amundi, launched a tokenized cash market fund on Ethereum in November, recording its first on-chain transaction earlier that month.
Ethereum has become the popular community for these merchandise, internet hosting the vast majority of tokenized real-world property and stablecoins. BlackRock’s BUIDL fund, with greater than $2 billion underneath administration, stays the most important instance.
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