JPMorgan, one of the world's largest investment banks, has recently made an important statement regarding Ethereum (ETH). According to reports, this American giant has submitted an application to the Securities and Exchange Commission (SEC) to launch a tokenized money market fund (MMF) based on Ethereum.
Bloomberg revealed that JPMorgan is working to establish a second tokenized money market fund to expand its blockchain-based financial services.
Currently, JPMorgan has submitted the necessary documents to the SEC, planning to launch an Ethereum money market fund (MMF) named JLTXX. The fund will be managed by Kinexys Digital Asset Company and will primarily invest in U.S. Treasury securities and ultra-short-term repurchase agreements (repos). The new product will also issue fund shares in the form of digital tokens on the Ethereum blockchain.
According to the announcement, investors can store the tokens in digital wallets, transfer them among each other, or use them as collateral in the cryptocurrency market. Compared to existing funds, the trading time for this fund is significantly reduced, with transactions able to be completed in minutes.
Additionally, the fund is designed to serve as collateral for stablecoin reserves under the GENIUS Act.
Market analysts suggest that this move could be a strategy for stablecoin issuers aimed at meeting the growing demand for on-chain high liquidity assets. However, the scale of the fund has not yet been disclosed, and the actual market impact is expected to depend on the level of adoption by future stablecoin issuers.