JPMorgan Chase (NYSE: $JPM), the world’s largest commercial bank, has filed with regulators to launch a new tokenized money market fund.
This would be JPMorgan’s first tokenized fund and comes as major Wall Street firms move traditional assets onto blockchain rails.
A filing with the U.S. Securities and Exchange Commission (SEC) outlines plans for a blockchain-based money-market fund that invests exclusively in short-term U.S. Treasuries.
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The fund, called JPMorgan OnChain Liquidity-Token Money Market Fund, will trade under the ticker symbol “JLTXX.”
The fund will maintain blockchain-based token balances tied to investors’ ownership records, allowing approved users to submit purchase, redemption, and transfer requests via the Ethereum (CRYPTO: $ETH) network.
The underlying blockchain infrastructure will be operated by Kinexys Digital Assets, JPMorgan’s proprietary blockchain unit formerly known as Onyx.
News of JPMorgan’s move into tokenized funds comes days after asset manager BlackRock (NYSE: $BLK) filed paperwork for a new tokenized Treasury reserve vehicle.
Tokenization is the process of creating blockchain-based representations of traditional financial assets such as stocks, bonds, and exchange-traded funds (ETFs).
Tokenization is one of the hottest trends in finance and crypto markets as it can reduce settlement times, improve transparency, and enable around-the-clock trading.
The tokenized real-world asset market has grown more than 200% over the past year and now exceeds $32 billion U.S., according to market data.
JPM stock has gained 16% over the past 12 months to trade at $304.88 U.S. per share.