Fidelity International tokenizes money market fund on JPMorgan blockchain

Fidelity International, a London-based fund management firm, is owned by JPMorgan ( JPM) EthereumIt tokenized shares in a money market fund (MMF) using Onyx Digital Assets, a private blockchain network.

Fidelity International, a separate organization from US-based Fidelity Management and Research, said the tokenization occurs almost instantaneously through the bank’s Tokenized Collateral Network, which sits between a collateral buyer and a collateral provider on the bank’s Onyx blockchain.

Tokenization of traditional financial assets has become a priority for banks and is an area that JPMorgan has been working on for several years. The goal of tokenization is to create a virtual investment vehicle that represents real-world assets such as real estate, precious metals and collectibles on a blockchain.

JPMorgan implemented the first live blockchain-based margin settlement involving tokenized shares in a BlackRock money market fund in October last year. The shares are deposited with Barclays as collateral in over-the-counter derivatives trading ( BCS ) was transferred. BlackRock ( BLK) has continued to further embrace tokenization through its publicly available BUIDL project with tokenization services firm Securitize.

Stephen Whyman, Head of Debt Capital Markets at Fidelity International, said in an email:

“Tokenizing our money market fund shares for use as collateral is an important first step in scaling our adoption of this technology. The benefits of this technology to our clients and the overall financial system are clear: increased efficiency in meeting margin needs and a reduction in process costs and operational risk.”

Keerthi Moudgal, head of product at Onyx Digital Assets:

“Fidelity’s participation in TCN brings MMF units to our network through tokenization and adds a new asset that is very complex to use in today’s collateral environment.”

This article was first published on CoinDesk Türkiye.

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