JPMorgan has continued its expansion into tokenization with the launch of a new money market fund on the Ethereum blockchain.
The 'OnChain Liquidity-Token Money Market Fund' (JLTXX) is designed to meet the collateral requirements of stablecoin issuers, which are increasingly looking for ways to back their tokens with high-liquidity assets such as US Treasuries or cash.
The fund will be managed by JPMorgan's digital asset division, Kinexys Digital Assets, and will have a portfolio comprising US government securities and short-term repo agreements backed by US Treasuries or cash.
The launch is seen as another step in the growing trend towards tokenization in traditional finance, with other banks such as Morgan Stanley and Franklin Templeton also exploring similar initiatives.