Key Takeaways
- Blackrock and JPMorgan are expanding access to tokenized investment funds.
- Visa’s annualized stablecoin settlement volume surpassed $25 billion.
- Grayscale estimates 80%-85% of global crypto activity occurs overseas.
Blackrock and JPMorgan Expand Tokenized Fund Access
Blackrock, JPMorgan, and Visa are embedding digital assets in mainstream finance, bolstering crypto’s prospects regardless of the U.S. midterm election outcome, Grayscale argued on Oct. 28. Zach Pandl, head of research at the digital asset manager, cited those companies alongside Franklin Templeton, Mastercard, Fiserv, and Stripe as examples supporting his assessment of institutional crypto adoption. He wrote:
“Crypto is institutional. Public blockchain technology is now more deeply embedded into the mainstream financial system, facilitated by institutional adoption.”
Eligible European investors gained access to blockchain-based versions of existing cash-management strategies through Blackrock’s (NYSE: BLK) European tokenized fund share classes on Aug. 4. The offering uses Kinexys, JPMorgan’s blockchain business, to issue and manage digital fund shares on Ethereum. Official ownership records remain maintained through the funds’ transfer agent infrastructure.
The asset manager’s cash business also introduced two tokenized money market products in August, extending its offerings into digital markets. One added a tokenized share class to an existing fund; the other targeted digitally native institutional investors. Their potential uses include managing reserves that support payment stablecoins.
JPMorgan Chase’s (NYSE: JPM) asset management business expanded tokenized money market funds to Solana on Oct. 22. Its MONY private fund serves qualified investors, while JLTXX is a registered government money market fund designed to support stablecoin issuers’ reserve needs. Both are accessible through Morgan Money.
Visa’s Stablecoin Settlement Surpasses $25 Billion Run Rate
Payment networks are also expanding blockchain services, with Visa (NYSE: V) reporting newer adoption figures during its Oct. 27 earnings call. Chief Executive Officer Ryan McInerney said annualized stablecoin settlement volume had surpassed $25 billion, up tenfold year over year. The network supported 10 blockchains.
That expansion followed Visa’s April 29 announcement that its stablecoin settlement pilot supported nine blockchains and had reached a $7 billion annualized run rate. At that pace, settlement volume over 12 months would total $7 billion. The pilot gave participants more networks for settling obligations.
Commercial applications now include using stablecoins in payments and settlement to fund cross-border transfers outside traditional banking windows. Visa Direct’s stablecoin prefunding entered commercial production Oct. 15 through Inyo Global. That service lets eligible businesses fund payouts with USDC in near real time.
A separate seven-day trial involving Lloyds Banking Group demonstrated settlement between institutions across private and public blockchain environments. Lloyds used USDC to settle $750,000 in payment obligations with Visa. Funds reached Visa in under an hour, including during the weekend.
Global Demand and Bipartisan Support Broaden Crypto’s Outlook
International demand and bipartisan participation also underpin the assessment, although Pandl acknowledged that elections can affect crypto at the margin. Grayscale estimates that 80%-85% of global activity occurs overseas.
“Regardless of the outcome of the US midterms, users around the world will continue to seek out alternatives to fiat currencies as well as more effective payment systems, and foreign regulators will continue to put in place rules to support digital assets innovation in their jurisdictions,” Pandl stated.
Domestic support includes bipartisan passage of the GENIUS Act, a U.S. law establishing a payment stablecoin framework covering reserves, redemptions, and disclosures. Pandl also cited cross-party crypto participation and earlier congressional votes during the Biden administration. He wrote:
“Perhaps most importantly, federal government debt will likely continue to grow unchecked regardless of the makeup of Congress, driving investors to alternative stores of value including cryptocurrencies.”
