Fidelity International Tokenizes Money Market Fund Using JPMorgan’s Blockchain

Fidelity International, a London-based funds management firm, has tokenized shares in a money market fund (MMF) using JPMorgan’s Ethereum-based private blockchain network, Onyx Digital Assets. The tokenization was executed almost instantaneously through the connectivity between the fund’s transfer agent (JPMorgan’s transfer agency business) and the Tokenized Collateral Network, an application that mediates between a collateral receiver and a collateral provider on the bank’s Onyx blockchain, according to Fidelity International, which is separate from U.S.-based Fidelity Management and Research.

Tokenization of traditional financial assets has become a priority for banks, an area where JPMorgan has been actively working for years. The essence of tokenization is to create a virtual investment vehicle on a blockchain representing real-world assets such as real estate, precious metals, and collectibles, as well as stocks and bonds.