Key Notes
- Investment giant JPMorgan has rolled out a tokenized money-market fund, aligning with other Wall Street firms.
- The MONY fund comes amid positive regulations like the GENIUS Act.
- The minimum investment expected from investors, whether institution or individual, is $1 million.
Popular investment banking giant JPMorgan Chase has moved further into the crypto ecosystem with a tokenized market fund. This is in a bid to bring blockchain technology to an investing staple, which is the money-market fund.
JPMorgan Plans to Open Fund to the Public
With up to $4 trillion in Assets Under Management (AuM), JPMorgan is utilizing the Ethereum (ETH) blockchain to roll out its first tokenized money-market fund.
According to a Wall Street Journal (WSJ) report, it plans to start with a $100 million seed from its capital, after which it would open it to outside investors. JPMorgan has called the fund My OnChain Net Yield Fund, or MONY.
This new private fund will be supported by JPMorgan’s tokenization platform, Kinexys Digital Assets. The firm plans to give access to qualified investors or individuals with at least $5 million in investments and institutions with a minimum of $25 million.
Meanwhile, the minimum investment expected from any investors, whether institution or individual, is $1 million.
John Donohue, Head of Global Liquidity at JPMorgan Asset Management, claimed that the fund launch is a response to the growing interest from clients for tokenized products.
“And we expect to be a leader in this space and work with clients to make sure that we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain,” he said.
Wall Street Get Serious with Tokenization
Meanwhile, it is worth noting that Wall Street investors have found a new interest in tokenization.
Stakeholders became more interested after the introduction of stablecoin regulations like the Genius Act. In September, Republic hinted at plans to tokenize Animoca Brands’ equity. The goal here is to provide global investors with access to a compliant framework.
Meanwhile, the Genius Act, a comprehensive framework for USD-pegged stablecoins, was signed into law earlier this year. It is designed to bring stability and security frameworks for digital assets. Some of its other key provisions are the implementation of strict Anti-money Laundering (AML) and Know Your Customer (KYC) protocols.
This regulation also ensures issuers maintain 1:1 reserves backed by US dollars and prevents potential monopolistic practices by major technology firms.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
Source: https://www.coinspeaker.com/jpmorgan-launches-mony-fund-on-ethereum-blockchain/