JPMorgan Files to Launch Tokenized Money Market Fund on Ethereum
JPMorgan is launching a new blockchain-based money market fund, JLTXX, which will operate on the Ethereum blockchain. The JPMorgan OnChain Liquidity-Token Money Market Fund will invest exclusively in U.S. Treasury bills, bonds, and notes. The fund will use JPMorgan’s Kinexys Digital Assets technology to create a permissioned layer on public blockchains, starting with Ethereum but potentially expanding to others in the future. The fund’s SEC filing identifies traditional risks, such as interest rate changes and market volatility, as well as specific blockchain-related risks, including regulatory uncertainty and possible technical flaws due to the relative immaturity of blockchain technology. This move follows JPMorgan's recent involvement in settling tokenized treasuries on the XRP Ledger with several partners. The new product will compete with similar offerings such as Franklin Templeton’s BENJI fund. Following the announcement, JPMorgan’s stock rose by 1.63% to $304.88.
