JPMorgan: Tokenization Will Drive Fund Industry Change, But 'Good Use Cases' Still Years Away

Gate News message, April 25 — JPMorgan’s global head of ETF product, Ciarán Fitzpatrick, said tokenization should drive change across the entire funds industry. “We believe tokenization will certainly drive how the market changes, not just for ETFs but across the funds industry as a whole,” Fitzpatrick stated. He noted that while tokenization will eventually become part of the ETF ecosystem, “we’re a couple of years away from some good use cases.”

Tokenizing ETFs could offer enhanced creation and redemption processes, near-instant settlement, and nonstop market access. JPMorgan is already exploring different use cases through Kinexys, the bank’s blockchain business unit.

Both traditional financial institutions and regulators have recently shown increased willingness to tokenize established investments, particularly equities and funds that trade on exchanges that close on weekends. The SEC has authorized various tokenization efforts, including approving a rule change enabling Nasdaq to support tokenized share trading. NYSE, Robinhood, and major centralized exchanges are all working to scale tokenized equities offerings. Analysts project tokenized assets could reach between $2 trillion and $10 trillion by 2030.

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