CoinDesk: Fidelity tokenizes MMF on J.P. Morgan’s blockchain

Fidelity International has joined J.P. Morgan’s Tokenized Collateral Network (TCN), piloting the tokenization of its own money market fund with Ethereum-based private blockchain network Onyx Digital Assets. The move means improved efficiency in delivering margin requirements and a reduction in transaction costs and operational risk, Fidelity International said, as cited by CoinDesk.

“Tokenizing our money market fund shares to use as collateral is an important and natural first step in scaling our adoption of this technology,” Stephen Whyman, Fidelity International’s head of debt capital markets, said in an email interview. “The benefits to our clients and the wider financial system are clear; in particular, the improved efficiency in delivering margin requirements and reduction in transaction costs and operational risk.”

J.P. Morgan’s TCN started with the tokenization of money market shares, a type of mutual fund that invests in high-quality, short-term debt instruments and cash equivalents. The plan is to expand across equities, fixed income and a range of asset classes, the bank said.

“Fidelity’s participation in TCN brings its MMF units onto our network through tokenization, adding a new asset that is otherwise prohibitively complex to use across today’s collateral landscape,” said Keerthi Moudgal, head of product at Onyx Digital Assets, JP Morgan, via email to CoinDesk.


Related Posts

Previous Post
How can securities lending data be made easier to analyze?
Next Post
FINBOURNE expands Taskize integration for exception management and query resolution

Fill out this field
Fill out this field
Please enter a valid email address.


Reset password

Create an account