BlackRock and JPMorgan deepen race for tokenized treasury assets

BlackRock and JPMorgan are intensifying their efforts to integrate tokenized money market funds as regulated reserve assets for stablecoin issuers. This strategic shift follows the passage of the GENIUS Act, which facilitates the use of tokenized U.S. Treasuries as backing for stablecoins. JPMorgan has launched its OnChain Liquidity-Token Money Market Fund (JLTXX) on the Ethereum blockchain, supported by a $100 million initial investment and participation from Anchorage Digital. Simultaneously, BlackRock is enhancing its existing $7 billion liquidity fund with blockchain-based records and developing new structures specifically for stablecoin reserves. The market for tokenized U.S. Treasuries has reached approximately $13.9 billion, with Ethereum hosting over 50% of this activity. These financial giants aim to capture liquidity by providing secure, on-chain alternatives to traditional reserve management. With nearly $30 billion in total assets now tokenized on public blockchains, the sector has seen significant growth since the beginning of 2024. This competition underscores a broader institutional transition toward utilizing blockchain infrastructure for high-liquidity financial products.

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