JPMorgan says tokenisation could transform the funds industry, but meaningful real-world applications remain at least two years away despite growing institutional interest.
The bank’s global head of ETF product, Ciarán Fitzpatrick, said tokenisation could improve settlement speed, enable continuous trading, and streamline fund operations across the industry.
“We believe tokenisation will certainly drive how the market changes, not just for ETFs but across the funds industry as a whole,”
Said JPMorgan ETF head Ciarán Fitzpatrick.
He added that while tokenisation is likely to become embedded in ETF infrastructure, practical use cases with scale are still developing and not yet ready for deployment.
JPMorgan is currently testing blockchain applications through its Kinexys unit, though the work remains in an experimental phase with no confirmed commercial rollout.
Momentum is building across the sector as regulators like the US Securities and Exchange Commission engage with tokenised products, while platforms including Nasdaq, New York Stock Exchange, Robinhood, Kraken, and Coinbase explore tokenised equities.
Estimates suggest the tokenised asset market could grow to between $2 trillion and $10 trillion by 2030, though timelines remain uncertain due to regulatory and adoption risks.