JPMorgan is planning to launch a government-tokenized tokenized liquidity-token money market funds with ticker JLTXX.
You can read more about it here:
- JPMorgan JLTXX is a fund that targets stablecoins issuers who need Treasury-backed Reserves and share transfer tools based on blockchain technology.
- Morgan Stanley MSNXX’s launch reveals Wall Street banks compete for stablecoin Reserve Management mandates.
- Earlier media coverage revealed that JPMorgan was involved in a pilot XRPL settlement with Mastercard Ripple Ondo Finance.
You can also find out more about the following: filing The Token Class shares dated May 13 2026 list the fund and say that it seeks to maintain liquidity while maintaining principal stability.
The fund has been created to help stablecoins issuers who need reserves assets as per the GENIUS Act. JPMorgan claims JLTXX is designed to invest according to the rules for eligible reserve assets. The portfolio of JLTXX will be dominated by U.S. Treasury Securities and overnight repurchase contracts backed either by Treasurys, or cash.
Ethereum has become the blockchain rail
JPMorgan says that Ethereum is currently the only blockchain available to investors. However, JPMorgan will add other networks in future. Investors need to use the approved blockchain address before they are able to buy, redeem or move token balances that link fund shares.
JLTXX records official ownership in the traditional form of bookkeeping. Blockchain layer can record token balances, and investors may use it to send transactions requests. It also claims that tokens balances and funds shares aren’t stablecoins. JLTXX itself is not an issuer of stablecoins.
Token shares also require an investment of at least $1 million to be opened. Total annual operating costs after waivers of fees and reimbursements are listed at 0.16%. The waivers will run until June 30th 2028 before JPMorgan makes a decision on whether or not to extend them.
Morgan Money also offers optional stablecoins services. In this process, investors can convert USDC to U.S. Dollars before purchasing funds or after redemptions. JPMorgan claims Circle has no affiliation with Kinexys, the adviser of the fund or Circle Digital Assets.
Wall Street enters the Reserve Products Market
Morgan Stanley’s Stablecoin Reserves was launched in April. Market updates said Under the ticker of MSNXX this fund targets stablecoins issuers. Cash, Treasury bills with short maturities, and overnight repos backed up by Treasurys are all investments. Minimum investment of $10 million.
JPMorgan tested the tokenized Treasury settlements outside its filing. Later coverage JPMorgan said that Mastercard, Ripple and Ondo had completed a test of cross-border redemption using the XRP Ledger and rails. In this pilot, OUSG used XRPL and Kinexys sent dollar to Ripple Singapore’s bank account.
While the IMF continues to warned The tokenization of settlement, liquidity, and risk management is a fundamentally new way to manage these processes. The April report said that to tokenize finance, clear policies rules, safe assets for settlement, code governance and legal certainty are needed.
Risks are also listed in the fund’s filing. Future rules under the GENIUS Act might affect whether or not the fund is able to back stablecoins. IMF also added that inadequate safeguards could lead to unstablecoins. “speed, concentration, and fragmentation” Risks in tokenized financial services
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Source: crypto.news
