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- JPMorgan is the latest financial firm to seek to launch a tokenized money market fund, applying for JTLXX.
- Its tokenized product will be based on its blockchain platform, which creates a permissioned layer on top of Ethereum.
- The launch follows the launch of BENJI, a tokenized money market fund from Franklin Templeton that is available on multiple blockchains.
Global banking giant JPMorgan is creating a new blockchain product, JLTXX – an on-chain money market fund that will have a connection to Ethereum blockchain.
The fund, called the JPMorgan OnChain Liquidity-Token Money Market Fund, will invest only in U.S. Treasury bills, bonds and securities. According to the Fund’s filing with the Securities and Exchange Commission. The fund will be operated through JPMorgan’s digital asset unit Kinexys.
According to the filing, the KDA technology it uses will “create a permissioned system” that sits on top of public blockchains, in this case Ethereum. But in the future, it may extend to other networks.
“The Ethereum blockchain, a public blockchain network, is currently the only blockchain available for use by investors, although it is expected to expand to other blockchains in the future,” the filing said.
While the fund cites interest rate changes and general market risks among things investors should be aware of, it also highlights “blockchain technology risks” as one of a range of key risks associated with investing in the fund, describing it as a “relatively new and untested technology.”
The blockchain not working as intended, regulatory concerns related to the technology, and undetected technical flaws are all present risks associated with the fund’s connection to the blockchain, according to the filing.
This initiative is the banking giant’s latest in the cryptocurrency space. last week, Tokenization company Ondo Finance announced that it has worked with JPMorgan’s Kinexys platformand Ripple and Mastercard to settle tokenized Treasuries on the XRP Ledger – the native blockchain for Ripple-pegged currencies. XRP Token.
JPMorgan’s upcoming tokenized money market fund product joins BENJI, a competing tokenized money market offering from financial firm Franklin Templeton, which can be accessed across a wide range of blockchains, including BNP SeriesCanton, and Avalanche.
JPMorgan (JPM) shares jumped 1.63% on the day, closing at $304.88.
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