JPMorgan is Launching a Second Tokenised Money Market Fund on Ethereum

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In Today's Note

• Markets pulled back as macro pressure rebuilt, with BTC briefly slipping below $80K, US equities closing lower, and Treasury yields moving higher after the CPI print.
• Inflation was the main pressure point, with annual headline CPI rising to its highest level since May 2023 and energy, groceries, airfares and gasoline all adding to pressure on consumers.
• Crypto updates centred on lending, security and institutional tokenisation, including Coinbase’s SOL-backed borrowing, Ethereum’s Clear Signing standard, MARA’s BTC sales, Schwab’s BTC and ETH trading rollout, and new on-chain fund initiatives from JPMorgan, Franklin Templeton/Kraken and BlackRock.

Market Snapshot: Overnight Moves

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Macro & Markets

• A continued geopolitical deadlock between the US and Iran and a hotter-than-expected CPI print saw traders pull back from risk assets over the past 24 hours. 
• BTC fell from $82K down to $79,800, but has since partly pared those losses to trade back above $81K. 
• The S&P 500 Index slid 0.16% and the Nasdaq-100 fell 0.87%, with tech stocks leading the fall. 
• According to the BLS, headline CPI rose 0.6% on a month-over-month basis in April 2026, in line with expectations. However, on a year-over-year basis, the CPI jumped 3.8%, exceeding the pace of earnings for the first time in three years and marking the highest YoY print since May 2023. 
• Core CPI rose 2.8% from a year earlier, the largest yearly jump since September 2025.
• Energy prices rose 3.8% MoM, after a 10.9% increase in March, “accounting for over forty percent of the monthly all items increase.” 
• Grocery prices rose 0.7% MoM in April, marking the largest monthly increase since August 2022, after falling 0.2% MoM in March. On an annual basis, grocery prices were 2.9% higher, while airfares rose 20.7% YoY. Gasoline prices increased by 5.4% MoM, slowing sharply from March’s 21.2% monthly jump.

• The renewed inflation worries pushed US treasury yields slightly higher across the curve — both the 2-year yield and 10-year yield rose 4bps to 3.99% and 4.46% respectively. 
• When asked about how the war is squeezing US consumers, President Trump told reporters yesterday, “The most important thing by far is that Iran cannot have a nuclear weapon. Every American understands.” He added that, “When this war is over, oil is going to drop, the stock market is going to go through the roof”.
• On the geopolitical front, Trump also told reporters yesterday that the focus of his summit meeting with Chinese President Xi Jinping would be around US-China trade, downplaying the time the two would spend talking about the Iran war. 
• Trump told reporters “We’re going to be talking to President Xi about a lot of things. I would say, more than anything, trade” and “We have a lot of things to discuss. I wouldn’t say Iran is one of them, to be honest with you, because we have Iran very much under control. We’re either going to make a deal or they’re going to be decimated one way or the other.”

DeFi & TradFi

• Coinbase, the largest US crypto exchange, has added Solana support to its on-chain crypto-backed lending product through its Morpho integration on Base, allowing users to borrow up to $100,000 against SOL collateral without selling their holdings.
• Coinbase said its crypto-backed lending platform has now surpassed $2.3B in total loan originations, with bitcoin accounting for almost all of collateralized borrowing volume  at roughly $2.17B, or around 94% of the total, while ETH, XRP, cbETH, DOGE, ADA, and LTC loans make up the remainder.
• SOL support adds another major asset to the product as Coinbase continues building toward its “everything exchange” strategy.

• Ethereum has introduced Clear Signing, a new standard designed to reduce the risks associated with “blind signing” transactions.
• The aim is to make transaction approvals more transparent by helping users understand exactly what they are authorising before they sign. 
• Blind signing has been a common final step in many phishing attacks and wallet-draining exploits, when users approve malicious transactions without seeing a clear explanation of their actions.
• The new ERC-7730 standard is intended to let applications provide readable transaction details, while wallets display them in a consistent and user-friendly format.

• MARA Holdings, the largest publicly listed Bitcoin miner in the US, reportedly sold 20,880 BTC, worth around $1.7B, during Q1 2026.
• The company also posted a $1.3B net loss for the quarter. According to the report, MARA used Bitcoin sales to repay debt and improve financial flexibility.

• Charles Schwab has begun offering spot BTC and ETH trading to select retail clients from May 12, expanding direct crypto access through one of the largest brokerage platforms in the US.
• The phased rollout of “Schwab Crypto” allows eligible users to trade Bitcoin and Ether directly, adding to the firm’s existing crypto exposure through ETFs and derivatives. The service uses separate crypto accounts, with custody provided by Charles Schwab Premier Bank and trade execution supported by Paxos.

• JPMorgan is launching a second tokenised money market fund on Ethereum, further expanding the use of public blockchain infrastructure in traditional cash management products.
• The new OnChain Liquidity-Token Money Market Fund, trading under the ticker JLTXX, will invest in US Treasuries and overnight repurchase agreements backed by Treasuries or cash. JPMorgan says the fund is designed to meet eligible reserve asset requirements for stablecoin issuers under the GENIUS Act.
• The fund will initially be tokenised on Ethereum, with JPMorgan’s Kinexys Digital Assets managing the blockchain infrastructure. While no launch date has been disclosed, the filing is set to become effective on 13 May.

• Franklin Templeton and Payward, Kraken’s parent company, have entered into a partnership to explore new onchain investment products, marking another step in the convergence between traditional finance and digital asset markets.
• The collaboration will focus on areas including tokenised equities, qualified custody, actively managed yield products and access to institutional crypto liquidity through Kraken’s OTC and Prime services. The firms will also explore tokenised versions of Franklin Templeton financial instruments, including yield-focused products for institutional clients.
• For Franklin Templeton, the partnership builds on its existing digital asset strategy, including crypto ETFs, its BENJI tokenised money market fund and work with Ondo Finance. For Kraken, it extends the firm’s push into tokenised markets following the launch of xStocks.

• BlackRock has filed with the SEC for the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, a new OnChain Shares fund that seeks current income while investing 100% of assets in cash, short-dated US Treasuries, and Treasury-backed overnight repos.
• The structure uses Securitize Transfer Agent as the official recordkeeper for tokenized fund shares, combining public-blockchain token records with an off-chain register that links wallet addresses to verified investor identities.
• Securitize’s role includes whitelisting wallets, enforcing transfer restrictions through smart contracts, supporting mint/burn mechanics, and maintaining compliance controls, creating a permissioned on-chain fund model for regulated investors.
  

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