Traditional finance continues to be interested in cryptocurrencies. Fidelity recently tokenized a money market fund on JP Morgan’s private blockchain.

JP Morgan is increasingly turning to blockchain. The American bank, although skeptical of cryptos, is increasingly active on blockchain technology and “tokenization”. Fund management company Fidelity International recently “tokenized” shares on JP Morgan’s Ethereum-based blockchain, named Onyx Digital Assets.

The objective is in particular to reduce transaction costs, strengthen security, offer greater flexibility to investors and reduce transaction risks. Fidelity had already participated in a similar project with the Swiss bank Sygnum.

A fruitful experience

For its part, JP Morgan had already welcomed a Blackrock monetary fund onto its blockchain last October. The customer experience had been successful, the effectiveness of collateral research had been proven, and operational and transaction risks had been reduced.

Even if JP Morgan remains very skeptical about the idea of ​​taking the plunge into the crypto market, it is increasing opportunities with other large entities to work on modernizing the banking system via blockchain.

As a reminder, “tokenization” is the process of transforming real assets into digital assets on a blockchain. This makes it possible to promote physical assets (precious metals, real estate, etc.) in the digital world.

Sébastien Bordry and Antoine Larigaudrie


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