In short
- JPMorgan is the latest investment firm to launch a mutual fund, JTLXX.
- Its tokenized product will rely on its blockchain platform, which creates a permission layer on top of Ethereum.
- The launch follows BENJI, a tokenized market fund from Franklin Templeton that is available on multiple blockchains.
Global banking giant JPMorgan is launching a new blockchain product, JLTXX-on-chain money market fund that will have a connection with Ethereum blockchain.
The fund, called the JPMorgan OnChain Liquidity-Token Money Market Fund, will invest exclusively in US Treasury bills, bonds, and notes. according to filings with the SEC. The fund will be managed by JPMorgan’s Kinexys Digital Assets unit.
According to the filing, the technology KDA uses “will create a permissioned system” that sits on top of public blockchains, in this case Ethereum. In the future, however, it may expand to other networks.
“The Ethereum blockchain, the blockchain network, is the only one currently available for use by investors, although expansion to other blockchains is expected in the future,” the filing reads.
Although the fund recognizes interest rate changes and the risk of the common market among the things that investors should be aware of, it also highlights the “risk of blockchain technology” as one of the main risks associated with investing in the fund, calling it a “new and untested technology.”
The blockchain does not work as intended, regulatory concerns related to the technology, and technical errors that have not been identified are the risks associated with the wallet to the blockchain, according to the filing.
The project is the latest for the banking giant within crypto. Last week, tokenization company Ondo Finance has announced that it is working with JPMorgan’s Kinexys platformRipple, and Mastercard to settle the wealth on the XRP Ledger – the Ripple-linked native blockchain XRP images a symbol.
JPMorgan’s upcoming investment fund will join BENJI, a competitive money market offered by financial firm Franklin Templeton, which is available on many blockchains, including The price of BNB sharesCanton, is A flood.
Shares in JPMorgan (JPM) jumped 1.63% on the day, closing at $304.88.
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