JPMorgan to launch tokenized money market fund for stablecoin issuers

JPMorgan’s filing comes nearly three weeks after rival investment bank Morgan Stanley launched its own money market fund, the Stablecoin Reserves Portfolio.

JPMorgan has filed to launch a tokenized money market fund on Ethereum, allowing stablecoin issuers to hold reserves backing their stablecoins in a regulated, cash-like vehicle while earning interest.

The "OnChain Liquidity-Token Money Market Fund," ticker JLTXX, will invest in US Treasury bills and overnight repurchase agreements collateralized by US Treasurys or cash, according to a filing Tuesday with the US Securities and Exchange Commission. JLTXX seeks to comply with the GENIUS Act, a stablecoin-focused law signed in July. 

Investors are subject to a $1 million minimum investment, and the fund carries a 0.16% annual fee after waivers. The fund will be managed by JPMorgan’s blockchain unit, Kinexys Digital Assets. The investment bank said the filing becomes effective on Wednesday, though it did not disclose when it would launch the fund.

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