JPMorgan Files to Launch Tokenized Money Market Fund on Ethereum

International banking big JPMorgan is establishing a brand new blockchain product, JLTXX—an on-chain cash market fund that may have a connection to the Ethereum blockchain. 

The fund, known as the JPMorgan OnChain Liquidity-Token Cash Market Fund, will make investments solely in U.S. treasury payments, bonds, and notes, according to the fund’s filing with the SEC. The fund can be powered by JPMorgan’s Kinexys Digital Belongings unit.

In line with the submitting, the KDA know-how it makes use of will “create a permissioned system” that sits on prime of public blockchains, on this case Ethereum. Sooner or later, although, it could develop to different networks.

“The Ethereum blockchain, a public blockchain community, is at the moment the one out there blockchain to be used by traders, though growth to different blockchains is anticipated sooner or later,” the submitting reads. 

Whereas the fund notes rate of interest modifications and basic market dangers amongst issues traders want to pay attention to, it additionally highlights “blockchain know-how danger” as one in every of a handful of essential dangers related to investing within the fund, calling it a “comparatively new and untested know-how.”

The blockchain not working as meant, regulatory considerations associated to the know-how, and undiscovered technical flaws are all current dangers related to the fund’s connection to blockchain, in accordance with the submitting.

The initiative is the most recent for the banking big inside crypto. Final week, tokenization firm Ondo Finance announced it worked with JPMorgan’s Kinexys platform, Ripple, and Mastercard to settle tokenized treasuries on the XRP Ledger—the native blockchain of the Ripple-linked XRP token. 

JPMorgan’s upcoming tokenized cash market fund product joins BENJI, a competing tokenized cash market providing from monetary agency Franklin Templeton, which is accessible on a broader vary of blockchains, together with BNB Chain, Canton, and Avalanche. 

Shares in JPMorgan (JPM) jumped 1.63% on the day, closing at $304.88.