JPMorgan Unveils Tokenized Money Market Fund on Ethereum

JPMorgan is expanding its blockchain capabilities with the launch of a new tokenized money market fund on Ethereum. The 'OnChain Liquidity-Token Money Market Fund' will allow stablecoin issuers to hold reserves backing their stablecoins in a regulated, cash-like vehicle while earning interest.

The fund, which has been filed with the US Securities and Exchange Commission, will invest in US Treasury bills and overnight repurchase agreements collateralized by US Treasurys or cash. This move is seen as a significant development in the use of blockchain technology on Wall Street, where executives are increasingly recognizing its potential for greater operational efficiency.

The fund's 0.16% annual fee is considered low for a money market fund with a stable asset value, according to Bloomberg analyst Eric Balchunas. The launch follows JPMorgan's first tokenized product, My OnChain Net Yield Fund, which was launched in December and holds short-term debt securities designed to deliver returns higher than bank deposit rates.