JP Morgan is Launching a Money Market Fund on Ethereum

There are headlines everywhere talking about how BlackRock and JP Morgan are launching money market funds on Ethereum, touting how Wall Street is moving on-chain.

But I'm going to be honest with you.

This isn't the big story.

This is just asset managers seeing that there are billions in cash in the on-chain economy with nowhere to go and these new funds capture 3-5x what a traditional money market fund charges for the same Treeasuries.

The more important story you're not being told is how a small number of companies and crypto networks are making existing systems operate together to remove billions of dollars of inefficiencies.

There are two tokenization trends.

The first is the one you're hearing about in the media. Products for crypto users; this is where these recent money market funds live. They don't touch or improve the existing financial infrastructure. They exist alongside it as a parallel system.

The second are upgrades to the actual financial infrastructure. These are changes to how the existing system operates, aimed at reducing costs, improving speed, or enabling composability between legacy systems.

You're hearing all about the first in the media, and nothing about the second.

Because the second one is boring.

But it's where the opportunity lies.

Let me prove it to you.

Why on Earth would you buy a money market fund on Ethereum?

It costs 3-5x more than buying a traditional fund through your broker, it comes with all sorts of complexities, and it's not insured under SIPC so if you lose your Ethereum wallet you lose your entire investment.

Now that's not to say these new funds don't add any value; they do.

For the first time, crypto people have collateral they can trust and earn yield on; not just some dodgy crypto platform they lend their money to.

But does it make the existing financial system operate better?

No.

This is the story you actually need to be positioned for, because it's the one that will make you money.

Right now, billions are wasted every year on making sure databases across financial institutions match despite them having the same trades and transactions. Additionally, hundreds of billions of dollars is tied up because it takes 24-hours for your trades to settle, your broker needs to hold collateral in case they go out of business in that time.

If your trades landed instantly, not in 24-hours, and all financial institutions shared the same ledger/database, it would save billions.

This isn't just some story I'm telling you; already hundreds of billions of dollars are flowing through these networks and the DTCC begins moving their $100T of assets onto these networks next month.

There is one crypto network that is at the forefront of this, and a handful of companies that are positioned to capture the bulk of this major trend.

But it's a story you're not being told.

As I say, in two weeks time I'll be going live with a major announcement on this secret megatrend that is developing.

Larry Fink and Jamie Dimon have both said that tokenization will have a larger impact on the global economy than AI.

So why aren't you being told about it?

Best,

Louis Sykes
Senior Crypto Analyst, All Star Charts