JPMorgan Chase (NYSE: $JPM), the world's largest commercial bank, has submitted an application to regulators to launch a new tokenized money market fund.
This will be JPMorgan's first tokenized fund, as major Wall Street firms are moving traditional assets onto the blockchain.
Filing with the U.S. Securities and Exchange Commission (SEC) outlines a blockchain-based money market fund plan that invests exclusively in short-term U.S. Treasury securities.
The fund is named the JPMorgan Chase On-Chain Liquidity Token Money Market Fund, with the ticker symbol "JLTXX".
The fund will maintain blockchain-based token balances linked to investor ownership records, allowing approved users to submit purchase, redemption, and transfer requests via the Ethereum (CRYPTO: 2000) network. Ethereum
The underlying blockchain infrastructure will be operated by Kinexys Digital Assets, JPMorgan Chase’s blockchain division (formerly Onyx).
A few days before the news of JPMorgan entering the tokenized fund space, asset manager BlackRock (NYSE: $BLK) filed documents to establish a new tokenized treasury reserve instrument.
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 most popular trends in finance and the cryptocurrency market, as it enables faster settlement times, increased transparency, and 24/7 trading.
Market data shows that the tokenized real-world assets market has grown by more than 200% over the past year and has now surpassed $32 billion.
JPMorgan Chase stock has risen 16% over the past 12 months and is currently trading at $304.88 per share.