JPMorgan Steps Further Into Crypto With Tokenized Money Fund (wsj.com)
- Reference: 0180392383
- News link: https://news.slashdot.org/story/25/12/15/2139238/jpmorgan-steps-further-into-crypto-with-tokenized-money-fund
- Source link: https://www.wsj.com/finance/investing/jpmorgan-steps-further-into-crypto-with-tokenized-money-fund-e3535f13
> JPMorgan Chase is joining the list of traditional financial firms seeking to bring blockchain technology to an investing staple: the money-market fund. The banking giant's $4 trillion asset-management arm is [1]rolling out its first tokenized money-market fund on the Ethereum blockchain . JPMorgan will seed the fund with $100 million of its own capital, and then open it to outside investors on Tuesday. Called My OnChain Net Yield Fund, or "MONY," the private fund is supported by JPMorgan's tokenization platform, Kinexys Digital Assets, and will be open to qualified investors, or individuals with at least $5 million in investments and institutions with a minimum of $25 million. The fund has a $1 million investment minimum.
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> Wall Street has waded deeper into tokenization since the [2]passage of the Genius Act earlier this year. The landmark measure, which establishes a regulatory framework for tokenized dollars known as stablecoins, has unleashed a wave of efforts to tokenize everything from stocks and bonds to funds and real assets. "There is a massive amount of interest from clients around tokenization," said John Donohue, head of global liquidity at J.P. Morgan Asset Management. "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."
[1] https://www.wsj.com/finance/investing/jpmorgan-steps-further-into-crypto-with-tokenized-money-fund-e3535f13
[2] https://slashdot.org/story/25/06/18/0036236/senate-passes-stablecoin-bill-in-major-win-for-crypto-industry
This ain't Jetsons' future, I want off! (Score:4, Funny)
If AI and crypto pop at the same time, the universe divides by zero and we all get sucked into a black hole with no internet access.
Re: (Score:2)
So, win/win?
Re: (Score:2)
> If AI and crypto pop at the same time, the universe divides by zero and we all get sucked into a black hole with no internet access.
Don't try to threaten me with a good time.
Fuck it's going to suck (Score:2)
When this bullshit crashes the economy. Unlike the 2008 market crash the upcoming grifter crash is going to have no floor because there's no actual assets behind it except your 401k.
There's only so much money laundering can do. A recent study found. Since 1975 80 trillion dollars has been moved to the top. So consumers are not going to be able to weather this. Especially with the collusion going on for rent that was just starting to get eliminated before the administrative change.
I think the problem
Note to JP Morgan (Score:2)
Pssst... "Blockchain" was hot 15 years ago. Nowadays, the cool kids are all about "AI". What's next, "The Network is the Computer"??
what advantage? (Score:1)
A normal ETF money market fund with the same assets in its "basket" can do the same thing; exactly what does being on a blockchain give it? (blockchain being the most abysmally performing distributed database possible)
Not seeing a convincing case for an investor.
Re: (Score:1)
One possible use case for blockchain money-market funds: You can trade 24/7 - the blockchain never sleeps.
As for "not seeing a convincing case for an investor" - a money-market fund is a place to park your money, it's not really a place to "invest."
Re: (Score:1)
Putting aside the tepid yields, they do call the buyers "investors"
can't imagine doing any kind of "day trading" with such a thing, given lack of variation during a typical day, so that 24/7 availability seems mostly pointless. 5 days of 16 extended hour trading should be good enough for money market etf.
The 2008 crisis was precisely because of this (Score:2)
The 2008 crisis was created by financial institutions selling complex securities that were incapable of performing due diligence on to verify their solvency.
These were called "securitized mortages and default credit swaps."
The new version of this is called "tokenized assets."
Same difference.
Prepare to be screwed if you play in that market.
Tokenization (Score:2)
Tokenization seems to mean taking an asset with value, creating a fake representation of it, selling that to someone in exchange for valuable money, and then laughing all the way to the bank. In the case of a bank doing this, the only difference seems to be that there is not as much laughing involved, because they are already at the bank. And in the case of a bank doing this with "stable" coins (that [1]aren't actually stable [bitcoin.com]), they're also skipping the "asset with value" step.
[1] https://news.bitcoin.com/usdx-stablecoin-breaks-from-its-1-peg-sliding-to-0-37/
I was worried (Score:2)
I was worried there might be a part of the market that wasn't set up for a fall when the bubble pops.
Re: (Score:1)
a month ago the JP Morgan analysts were saying BTC couldn't fall below $91K, there would be "natural support" due to the costs of mining.
LOLZ, maybe JPM and investing shouldn't be in the same sentence.
Re: (Score:1)
the crypto bubble? there isn't enough in crypto compared to the world's other assets to matter. The cypto fan-bois like to think they are huge and relevant but $3T just isn't.