JPMorgan has unveiled a tokenized money market fund built on the Ethereum blockchain, marking a significant step in Wall Street’s shift toward digital assets. The initiative allows institutional investors to access traditional money market instruments through blockchain-based tokens, providing faster settlement, enhanced transparency, and 24/7 liquidity.
The tokenized fund leverages smart contracts to automate processes typically handled by intermediaries, reducing operational costs and counterparty risk. JPMorgan’s move comes amid growing interest from major financial institutions in on-chain financial products, including tokenized bonds, equities, and cash-equivalent instruments.
Industry experts view the launch as part of a broader trend where banks are exploring digital asset infrastructure to streamline portfolio management, settlement, and compliance while engaging a new generation of blockchain-savvy investors.
This development aligns with the firm’s earlier blockchain innovations, including the JPM Coin and Onyx platform, reflecting a strategic push to integrate decentralized finance (DeFi) concepts within regulated markets.
