#Fidelity International Tokenizes its Money Market Fund on the #JPMorgan Blockchain
The British company joined JPMorgan's Tokenized Collateral Network TCN and piloted the tokenization of its own money market fund with Onyx Digital Assets.
Fidelity International, a London-based fund management company, has tokenized shares in an MMF money market fund using JPMorgan's #Ethereum -based private blockchain network, Onyx Digital Assets.
Tokenization occurred almost instantaneously through connectivity between the fund's transfer agent (JPMorgan's transfer agency business) and the Tokenized Collateral Network, an application that sits between a collateral recipient and a collateral provider in the bank's Onyx blockchain, said Fidelity International, which is a separate entity to U.S.-based Fidelity Management and Research.
“Tokenizing our money market fund shares for use as collateral is an important and natural first step in expanding our adoption of this technology,” said Stephen Whyman, head of debt capital markets at Fidelity International. “The benefits for our clients and the financial system in general are clear; in particular, improving efficiency in meeting margin requirements and reducing transaction costs and operational risk”
JPMorgan's TCN began by tokenizing money market stocks, a type of mutual fund that invests in short-term debt instruments and high-quality cash equivalents. The plan is to expand into equities, fixed income and a variety of asset classes, the bank said
"Fidelity's stake in TCN brings its MMF units to our network through tokenization, adding a new asset that would otherwise be prohibitively complex to use in the current collateral landscape," said Keerthi Moudgal, head of product at Onyx Digital. Assets, JP Morgan
