JPMorgan Files for Tokenized Money Market Fund on Ethereum
JPMorgan has filed with the SEC to launch the JPMorgan OnChain Liquidity-Token Money Market Fund (JTLXX), which will invest in U.S. Treasury bills, bonds, and notes. The fund will use JPMorgan's Kinexys Digital Assets (KDA) platform, which creates a permissioned layer on top of the Ethereum blockchain. The filing highlights blockchain technology as a key risk, citing its relatively new and untested nature, potential regulatory concerns, and undiscovered flaws. The move follows Franklin Templeton's BENJI, a similar tokenized money market fund available on multiple blockchains like BNB Chain, Canton, and Avalanche. Additionally, JPMorgan recently collaborated with Ondo Finance, Ripple, and Mastercard to settle tokenized treasuries on the XRP Ledger. JPMorgan's stock rose 1.63% to $304.88 on the day.
Key facts
- JPMorgan files for JTLXX, a tokenized money market fund investing in U.S. Treasuries.
- Fund uses Kinexys Digital Assets to create a permissioned layer on Ethereum.
- Blockchain risk cited as new and untested technology in SEC filing.
- Follows Franklin Templeton's BENJI fund available on multiple blockchains.
- JPMorgan's stock rose 1.63% to $304.88 on the filing day.