JPMorgan has filed to launch a new tokenization fund with the US Security and Exchange Commission (SEC). The blockchain-based product will operate on the Ethereum network, indicating that Wall Street is becoming more aggressive in adopting blockchain technology.
The new product is called JPMorgan OnChain Liquidity Token Money Market Fund (JLTXX), a blockchain based fund that will invest in short term US government bonds, cash, and repo agreements backed by government securities.
Unlike traditional money market funds, this product will use Ethereum blockchain technology to record investor ownership and process transactions such as purchases, redemptions, and digital asset transfer.
The blockchain infrastructure behind the product will be operated by Kinexys Digital Assets, JPMorgan’s blockchain division formerly known as Onyx.
The move comes amid the growing trend of tokenizing real world assets on Wall Street. Tokenization refers to the process of converting traditional financial assets into blockchain based digital representations so they can be traded and managed more efficiently.
JPMorgan’s tokenized fund is also designed to meet reserve asset requirements under the GENIUS Act, a proposed US law regulating stablecoins. This creates an opportunity for stablecoin issuers to use the product as a reserve asset that can still generate yield.
Previously, BlackRock also filed for a similar tokenized Treasury product. The competition shows that major financial institutions increasingly view blockchain as a key part of future financial infrastructure.
Through this latest move, JPMorgan demonstrates that the integration between traditional finance and blockchain technology is accelerating rapidly on Wall Street.
