JP Morgan places HBAR Network within the reference set for big-scale, regulated tokenization.
In a new video, crypto commentator CryptoSpirit highlights a JP Morgan Asset Management report that explicitly names Hedera Hashgraph (HBAR) as an example of a public permissioned distributed ledger for tokenization. For a bank that usually speaks in broad, network-agnostic terms, the direct reference stands out.
The report, dubbed “Tokenization of Money Market Funds” comes from JP Morgan’s crypto asset management arm and its tokenization platform team (including Kinext, formerly Onyx-linked initiatives). According to the video, the section on digital asset infrastructure breaks down different types of ledgers and, under “public permissioned DLTs,” cites Hedera Hashgraph as the illustrative case.
The report describes this class of network as open to all users but operated by a select group of nodes — in Hedera’s case, its Governing Council of large enterprises such as Google and IBM. The video host views this as an acknowledgment from a “cornerstone” financial institution that Hedera fits the profile of a network suitable for large-scale tokenization under regulatory scrutiny.
Tokenization Target: Trillions In Money Market Funds
The new JP Morgan paper estimates that around USD 35 billion in traditional assets are currently tokenized on public blockchains, a fraction the video quotes as “less than 0.01%” of industry assets under management. The host stresses the implication: “99.9% still to be captured” in JP Morgan’s own framing.
Money market funds are a core focus. The report notes that the nine largest tokenized money market funds hold roughly USD 8 billion in AUM today, spread across eight providers and multiple administrators, custodians and transfer agents. Most of these live on Ethereum for now, which the video characterizes as the “test ground.”
The bigger addressable pool, according to the creator, is over USD 8 trillion in U.S. money market funds alone, before looking globally.
UK Pilot Puts Hedera’s HBAR In Live FX Collateral Test
The video connects JP Morgan’s theoretical framing to a live UK pilot already using Hedera Hashgraph (HBAR).
In mid-2023, abrdn, Lloyds Banking Group and fintech Archax completed what they described as the UK’s first use of digital assets as collateral. According to the host’s summary:
* They tokenized units of an abrdn money market fund
* Then tokenized United Kingdom (UK) gilts from Lloyds Bank
* Those were issued, transferred and held on the Hedera public network
* Used as collateral in FX trades executed via Archax, an FCA‑regulated platform
The Bank of England has previously highlighted that the UK handles about USD 5.4 trillion in daily FX turnover, roughly half of global activity. The video leans on that figure to argue that demonstrating tokenized collateral in this segment is non-trivial, even if the pilot scale isn’t disclosed.
The pilot, as described, aims at programmable collateral management: enforcing trading agreement rules on-chain, cutting operational frictions and potentially reducing forced asset sales in periods of stress.
Why This Matters
The creator argues that Hedera’s positioning — public but permissioned at the node layer, energy‑efficient, and already used in a regulated UK pilot — matches the architecture JP Morgan describes as viable for institutional tokenization.
The report itself, as relayed in the video, does not endorse Hedera commercially, nor does it say JP Morgan will build on it. Its significance is narrower but still notable: a major asset manager placing Hedera in the reference set for public‑permissioned DLTs in a market (tokenized MMFs) that remains almost entirely untapped.
For crypto investors, the key takeaway is directional rather than immediate: if money market tokenization grows from tens of billions to even low single‑digit percentages of global AUM, the underlying settlement and collateral networks could see sustained, infrastructure‑level demand. Hedera is now on at least one big bank’s short list of examples for that category.
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