JPMorgan is launching a second tokenized money market fund on Ethereum targeting stablecoin reserve demand.
Stablecoin News
JPMorgan is launching a second tokenized money market fund on the Ethereum blockchain, this time designed to satisfy the reserve requirements that stablecoin issuers will face under the GENIUS Act. The fund, called the OnChain Liquidity-Token Money Market Fund, will trade under the ticker JLTXX, according to an SEC filing dated May 12.
JLTXX will invest in US Treasurys and overnight repurchase agreements collateralized by Treasurys or cash. The SEC filing becomes effective May 13, though JPMorgan has not disclosed a launch date.
The fund's blockchain operations will be managed by Kinexys Digital Assets, JPMorgan's own digital assets business unit. Ethereum is currently the only available blockchain for the fund, though the filing states that expansion to other chains is anticipated.
JLTXX is JPMorgan's second tokenized money market fund after MONY, which launched late last year and was aimed at institutional investors seeking on-chain cash management. The new product is more directly targeted at the #stablecoin reserve market.
Under the GENIUS Act, US-compliant stablecoin issuers will be required to back their tokens with highly liquid assets, including US Treasurys, cash, and insured bank deposits. JPMorgan stated in the filing that JLTXX is structured to meet those eligible reserve asset requirements.
The product is similar in concept to a stablecoin reserve fund Morgan Stanley launched last month, though that product does not operate on blockchain rails. Franklin Templeton also has a tokenized money market fund, BENJI, operating in the same space.
Data from RWA(dot)xyz shows the tokenized real-world asset market has grown to approximately $32.2 billion as of May 12, with tokenized #US Treasury products representing the largest segment at roughly $15.9 billion.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
