JPMorgan Steps Further Into Crypto With Tokenized Money Fund (wsj.com) 26
An anonymous reader quotes a report from the Wall Street Journal: 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 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.
Wall Street has waded deeper into tokenization since the 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."
Wall Street has waded deeper into tokenization since the 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."
I was worried (Score:2)
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The greedy scum will make sure everything goes down.
This ain't Jetsons' future, I want off! (Score:5, 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.
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So, win/win?
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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.
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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.
Dude, settle down. I can only get so hard.
"the money-market fund" (Score:1)
Yeah, neat way to hide money out of reach up in the rain forest canopy.
And JPMorgan, the criminal organization that crashed the economy back in '08... Looks like they'll be getting another bailout, which has already begun [newyorkfed.org], when they crash it again "Hey, man, can you spare 5 million? I need a cup of coffee."
Fuck it's going to suck (Score:3, Insightful)
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 is we have too many old people who think they are insulated from this. By the time they find out they aren't it'll be too late.
LOL you think this is going to crash the system? (Score:3)
This is a $100M technology pilot that is doing nothing more than trying out the idea of using public blockchains to replace the current crusty infrastructure for messaging financial transactions between institutions.
The housing and stock markets are in massive bubbles. I believe the median house price should be conservatively $1
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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.
Some part of me wonders if that isn't the entire point. Wall Street wanted our retirement funds to be their plalythings and they've spent decades now batting them around like kittens with balls of yarn, but there are now bigger "more important" people involved and they don't want our retirement funds to be something that actually pays us back for our investments over the course of our careers. They want that money to belong to them permanently. And they see a nice roadmap on how to accomplish that based on
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"??
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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."
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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.
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Some of the banks giving or buying dodgy loans back then claimed fancy new software allowed them to mitigate the risk of questionable borrowers.
Problem was, USA was the beta test.
Tokenization (Score:4, Interesting)
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 aren't actually stable [bitcoin.com]), they're also skipping the "asset with value" step.
The real economy is fcuked .. (Score:2)
This makes sense (Score:1)
Crypto is about crime and JP Morgan Chase is about money laundering for human traffickers [constructamiracle.com].
oh look (Score:2)
What a surprise, modded down by someone on Slashdot for condemning a bank for willfully and deliberately doing business with child rapists.
A whole fucking lot of you need your hard disks checked.
Now you know. (Score:1)
This is why JP Morgan was shorting MSTR and crypto generally so hard the past couple of months. Creating entry points for their own treasury and tokenization scheme.
First, engulf and devour (Score:2)
...then, with no Glass-Steagal, screw around.
Another major bank that will crash when the bubble pops.