JPMorgan expects tokenisation to drive change across the broader fund industry beyond exchange-traded funds.

The Block reported on Thursday that Searen Fitzpatrick (시어런 피츠패트릭), global head of ETF products at JPMorgan Securities Services, said ETF tokenisation experiments are ongoing. She cited improved subscription and redemption processes, near-instant settlement and round-the-clock access as benefits of tokenisation.

Fitzpatrick said it would still take time for meaningful use cases to emerge. She said tokenisation would become part of the ETF ecosystem, but it would take several more years for practical applications to take hold.

JPMorgan is reviewing multiple use cases through Kinexys, its bank blockchain business unit.

The Block reported that financial institutions and regulators have recently become more proactive in tokenising existing investment products. Stocks and funds, for which exchanges are closed on weekends, are being cited as key targets. SEC Commissioner Hester Peirce recently advised companies reviewing tokenised products to consult directly with regulators.

The SEC has allowed multiple tokenisation efforts, including approving a rule change that would enable Nasdaq to support tokenised stock trading. The New York Stock Exchange, Robinhood, Kraken and Coinbase are also pushing to expand tokenised stock products. Some in the market also expect tokenised assets to grow to several trillion dollars over the next 10 years.