JP Morgan Asset Management is set to launch a second tokenised money market fund on the Ethereum network.
The JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX) will solely invest in US Treasury bills, bonds and notes, overnight repurchase agreements fully collateralised by US Treasury securities and/or cash.
Shares of the fund are tokenised, allowing for digital representation and transfer of ownership interests on blockchain networks.
The blockchain technology used by the fund, which operates on top of public blockchains, is designed, deployed and maintained by Kinexys Digital Assets.
It will be managed in order to satisfy the eligible reserve asset requirements for stablecoin issuers under the Guiding and Establishing National Innovation for US Stablecoins Act (‘GENIUS Act’), although the prospectus stated neither the fund’s shares nor token balances are stablecoins.
Last week, Ondo, Kinexys by JP Morgan, Mastercard and Ripple completed the first cross-border, cross-bank redemption of tokenised US Treasuries. The pilot established a framework for 24/7, near real-time cross-border settlement across global banks for tokenised asset redemption.
