Wall Street's latest RWA focus: money market funds, intraday repo, commercial paper
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Wall Street's latest RWA focus: money market funds, intraday repo, commercial paper
JPMorgan指出，华尔街巨头们正以前所未有的速度将现实世界资产（RWA）代币化，并将其整合到核心金融业务中。
Navigating Web3 tides with focused insightsBy: Bob Yi Long, Wall Street Insights
Today, the integration of traditional finance and digital assets is no longer a distant vision, but an ongoing structural transformation.
According to Wind Trading Desk, a recent report from JPMorgan on August 27 shows that Wall Street giants are tokenizing real-world assets (RWA) and integrating them into core financial operations at an unprecedented pace.
This is primarily evident in three cutting-edge areas: money market funds tailored for stablecoins, blockchain-based intraday repo transactions, and fully digitized commercial paper issuance.
JPMorgan believes these innovations could enhance trading efficiency, reduce costs, and improve liquidity management, but regulatory frameworks still require time to develop. The CLARITY Act is not expected to be formally passed until early 2026.
Stablecoin Reserve Funds: The Digital Transformation of Traditional Money Market Funds
Traditional financial institutions are actively embracing the stablecoin market, viewing it as a key bridge connecting the digital and physical worlds.
The report notes that BNY Mellon is preparing to launch a money market fund focused on stablecoin reserves, becoming the third major asset manager in this space after BlackRock and Goldman Sachs.
Last week, Goldman Sachs filed an application for a stablecoin reserve fund, while BlackRock launched the Circle Reserve Fund back in late 2022. Shares of this fund are intended to be held by stablecoin issuers as reserve backing for their circulating payment stablecoins.
According to its filing with the U.S. Securities and Exchange Commission (SEC), the "BNY Dreyfus Stablecoin Reserves Fund" is primarily targeted at stablecoin issuers, serving as reserve assets for their stablecoins.
The fund is classified as a government money market fund, with investments strictly limited to U.S. Treasuries, Treasury repurchase agreements, and cash.
In its SEC filing, BNY Mellon stated, "Because the fund intends to invest only in certain qualified reserve assets as specified by stablecoin legislation, the fund's yield may be lower than other money market funds permitted to invest in a broader range of securities and longer maturities."
Blockchain-Powered Intraday Repo: 24/7 Trading Becomes Reality
Liquidity management is central to financial markets. The report highlights two breakthrough advances leveraging blockchain technology to revolutionize the repo market, aiming to meet liquidity demands beyond regular trading hours.
The first case involved a standard repo transaction completed on a Saturday via the Tradeweb platform on Canton Network, a public blockchain.
The transaction tokenized U.S. Treasuries held at a DTCC subsidiary and used them as collateral to borrow USDC, a stablecoin issued by Circle.
The entire transaction was settled instantly on-chain without requiring dealers as intermediaries, achieving immediate settlement unattainable in traditional markets. Participation by institutions including Bank of America and Citadel underscores the immense cross-institutional collaboration potential of this technology.
The second case comes from a collaboration among JPMorgan, HQLAx, and Ownera.
They introduced a cross-ledger repo solution enabling traders to exchange between JPMorgan’s cash ledger and HQLAx’s collateral ledger, with settlement and maturity times precise to the minute.
This provides institutions with a new, highly efficient tool for optimizing intraday liquidity, far surpassing the settlement efficiency of traditional repo transactions.
Blockchain Revolution in Commercial Paper: Full Lifecycle Digitization
Blockchain applications have now penetrated the core processes of traditional debt instruments.
The report reveals that OCBC Bank issued $100 million in U.S. commercial paper through JPMorgan’s Digital Debt Services, becoming the first bank to issue commercial paper using blockchain across its entire lifecycle—issuance, settlement, servicing, and recordkeeping.
State Street purchased all the paper and became the first third-party custodian on the digital debt service platform.
By leveraging blockchain, these processes become more efficient and transparent, while delivering additional benefits such as faster settlement times.
JPMorgan notes that the convergence of digital assets and traditional finance is just beginning, and although regulation in this area is progressing, widespread adoption will still take time.
The U.S. CLARITY Act is current legislation under consideration aimed at establishing a comprehensive regulatory framework for all digital assets in the market, resolving structural and jurisdictional ambiguities between the SEC and CFTC.
The bill has passed the House but not yet the Senate, and is expected to take more time. JPMorgan anticipates the bill will not reach the U.S. President's desk until early 2026.
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