JPMorgan: Tokenization Will Transform Funds Industry, But 'Good Use Cases' Still Years Away

Gate News message, April 26 — JPMorgan’s global head of ETF product, Ciarán Fitzpatrick, said on Friday that tokenization will drive change across the entire funds industry, not just ETFs. “We believe tokenization will certainly drive how the market changes, not just for ETFs but across the funds industry as a whole,” Fitzpatrick stated.

The executive noted that ongoing experimentation with tokenizing ETFs could unlock benefits including enhanced creation and redemption processes, near-instant settlement, and nonstop access. However, Fitzpatrick cautioned that meaningful adoption remains distant: “My view on tokenization is that it will become part of the ETF ecosystem, but we’re a couple of years away from some good use cases.” JPMorgan is already exploring various use cases through Kinexys, the bank’s blockchain business unit.

The move reflects broader industry momentum. Both traditional financial institutions and regulators have recently shown increased willingness to tokenize established investments, particularly equities and funds that trade on exchanges closed during weekends. The SEC has authorized multiple tokenization efforts, including approving a rule change enabling major exchanges to support tokenized share trading. Industry analysts project tokenized assets could reach $2 trillion to more than $10 trillion by 2030.

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