Salvatore Martini (martinisalvatore)

Alert 🚨: Educational content disclosed ✍️ Thanks me later.

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I'm carefully reading the news about JPMorgan's "first" tokenized money market fund on Ethereum (ticker: MONY). The fund was launched today, December 15, 2025, and invests in Treasuries and repos like a regular money market fund, but its units are represented by on-chain tokens. Qualified investors, with a minimum investment of $1 million, deposit USDC or cash and receive tokens that incorporate returns. Before calling it a revolution, however, it's worth putting some numbers into perspective. BlackRock, with BUIDL, came in first, and not by a small margin, with over $2.5 billion in AUM. The entire tokenized money market fund sector is currently worth around $9–10 billion. However, to put this in perspective, the global traditional money market fund market is worth over $6 trillion. So, we're talking, literally, pocket change compared to the MMF universe as a whole. JPMorgan isn't breaking new ground, it's simply entering an existing one that's still marginal in terms of scale. The advantage being sold is always the same: so-called "capital efficiency." Tokens can be used as collateral in DeFi or on exchanges without having to redeem fund shares. But let's call a spade a spade. This isn't financial magic: it's rehypothecation 2.0. Faster, more transparent, operational 24/7 thanks to blockchain, sure. But the reuse of collateral to build leverage remains. And on this point, the story is very clear. When "safe collateral" is rehypothecated on a chain, the system tends to break down in times of stress. It happened in 2008 with the repo market, and it happened again in 2022 in the crypto world with Celsius, Genesis, and other well-known cases. As long as the environment is calm, everything seems efficient, but when stress arrives, the classic dynamics of liquidity mismatch and contagion channels emerge, in perfect bank run style. It's not just my opinion: BIS and the Banque de France have it written in black and white. For a pure TradFi investor, this structure is an unnecessary complication. And that's also why, in my opinion, much of the narrative surrounding tokenization today seems highly overhyped. For those who operate a hybrid between crypto and DeFi, however, it can be a convenient tool. But the "epochal turning point" hype remains off the charts. It's simply the same wine in a new bottle: the same over-leveraged finance as always, only faster and more operationally efficient. And if this model were to scale unchecked, it risks becoming yet another vector of systemic instability disguised as innovation.

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Baseposting has its perks 🟦 ⬜️

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Bm ☕️

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