New York: In a sign of increasing trust in blockchain technology, US-based investment banker JPMorgan Asset Management has launched a tokenized money market fund on the Ethereum blockchain, following the US government’s clearing of various regulatory grey areas by passing the GENIUS and CLARITY Acts. With an initial investment of $100 million, the fund is designed to invest only in US Treasury and other debt securities.
Currently available to US investors, the fund is called the JPMorgan OnChain Liquidity–Token Money Market Fund (JLTXX), where qualified investors can subscribe to the fund through JP Morgan’s open architecture trading platform Morgan Money®.
This is the second fund using JP Morgan’s multi-chain asset tokenization solution. Through this blockchain-based fund, investors can pay and redeem through the Morgan Money platform using cash or stablecoins via a third-party vendor. It will also offer daily dividend reinvestment plans.
“Investors are increasingly looking for ways to modernize liquidity management without changing the fundamentals of what they own,” John Donohue, Head of Global Liquidity at J.P. Morgan Asset Management, said in a press release.
“Money market funds have long served as a core tool for investors seeking liquidity, stability and competitive short-term yield. There is a continued shift toward bringing established financial products onto public blockchain networks and we are excited to bring more options to market for our clients.” he adds.
