JPMorgan Moves First, Tokenizes a Money Market Fund on Ethereum, Wall Street Goes On-Chain
Digital Asset Market: JPMorgan has launched its first tokenized money market fund, the My OnChain Net Yield Fund (MONY), on the public Ethereum blockchain through its Kinexys Digital Assets platform. The fund, available to qualified investors via the Morgan Money platform, allows subscriptions and redemptions in cash or stablecoins and invests in US Treasury securities and repurchase agreements backed by them. By issuing tokenized shares, investors gain transparency, peer-to-peer transferability, and potential for broader collateral use within the blockchain ecosystem. This move makes JPMorgan the largest global bank to introduce a tokenized money market fund and underscores its expanding role in regulated digital-asset products. It also signals that US regulators may be adopting a more favorable stance toward blockchain-based financial instruments since the product clearly qualifies as a security.
Macro Economics: Oil prices have fallen sharply, with U.S. crude dipping below $55 per barrel for the first time since early 2021 and Brent crude slipping under $59 amid signs of a growing global supply glut and progress in Ukraine peace talks. The drop reflects an oversupplied market as OPEC+ has substantially increased output after years of production cuts, adding millions of barrels per day and flooding the market alongside rising inventories in the United States. The potential easing of sanctions on Russian oil and the return of stored supply could further weigh on prices. Analysts report weakening demand indicators, such as slower job growth in the U.S. and easing fuel premiums, while the market structure has shifted into contango, signaling expectations of continued surplus. Both Brent and WTI are headed for annual losses exceeding 20%, marking their worst performance in years, even as lower oil and gasoline prices offer some relief from inflationary pressures.
Equities: US stocks fell on Tuesday as investors digested a mixed labor market report showing stronger-than-expected job growth but a rise in unemployment. The Dow Jones, S&P 500, and Nasdaq all slipped after modest losses earlier in the week. The November jobs report showed 64,000 jobs added, while unemployment rose to 4.6%, the highest since 2021, and October’s data was revised to show a loss of 105,000 jobs. The figures add uncertainty to expectations about potential Federal Reserve rate cuts in 2026, with traders still anticipating two. Attention now shifts to Thursday’s consumer inflation report, another key input for the Fed’s January policy decision. Meanwhile, Ford shares gave up early gains after announcing a $19.5 billion charge tied to its shift away from electric vehicles, and investors awaited Lennar’s earnings after the close.
The Fed and US Treasury: The November jobs report presented a paradox for the Federal Reserve as payrolls rose by 64,000, surpassing expectations, while the unemployment rate jumped to 4.6%, the highest in four years. Job gains were concentrated in health care, construction, and social assistance, but losses in government and transportation weighed on the broader picture. Wage growth cooled to 0.1% for the month and 3.5% year over year, reinforcing evidence that labor market pressures on inflation are easing. Despite modest headline growth, the rise in unemployment and the shift toward part-time work suggest weakening labor market momentum, increasing the likelihood that the Fed will continue easing rather than tightening policy.
In other news, Kevin Hassett, a finalist for the Federal Reserve chair position, emphasized the importance of the Fed’s independence and the value of building consensus based on facts and data. While President Trump is expected to soon choose a successor to Jerome Powell, Hassett defended his close relationship with Trump, saying it should not disqualify him from consideration. Some advisors reportedly worry he might be seen as too willing to follow Trump’s preferences on interest rates. Still, Hassett stressed that decisions should align with the Fed’s dual mandate of stable prices and full employment. Other candidates, including former Governor Kevin Warsh, remain in contention, with a final decision expected in early January.Geopolitical: Ukrainian President Volodymyr Zelensky and U.S. officials have described significant progress toward a potential peace deal with Russia after meetings in Berlin, saying both Ukraine and Europe agree on around 90% of a U.S.-backed proposal. A significant feature of the talks is a plan for NATO-style security guarantees for Ukraine that would offer Article 5-like protection without granting formal NATO membership. Zelensky called the draft workable but noted unresolved territorial issues, particularly concerning the Donbas region, where the U.S. has proposed creating a free economic zone not controlled by Russia. While officials from Kyiv, Washington, and Berlin have expressed optimism, Russia is expected to view such guarantees as a direct provocation that could bring the West closer to open conflict. The specific terms of the security arrangement remain undecided, with questions over whether it would take the form of a binding treaty or a political pledge. The U.S. has ruled out deploying ground troops, but Trump has offered air patrols and intelligence support.
View from our desk
Bitcoin ETFs Signal a Shift From Speculation to Stability
Bitcoin’s ETF market appears increasingly institutional by design. Inflows are running below last year’s peak, and price action has consolidated near the $87,000 level, yet market structure continues to improve. ETFs absorb supply during drawdowns, reduce reflexive selling, and smooth volatility across trading sessions. These dynamics point to a structural transition, with bitcoin evolving into a portfolio allocation held through cycles rather than a high-beta momentum trade. Market focus is shifting toward durability, liquidity depth, and long-term integration into mainstream asset allocation.
Tether’s Gold Accumulation Redefines Who Sets Reserve Strategy
Tether’s purchase of 26 tons of gold in a single quarter, lifting total holdings to 116 tons, places it among the world’s top 30 gold holders, ahead of many central banks. The scale of these purchases highlights a broader reallocation of influence from sovereign balance sheets to private financial infrastructure firms. Stablecoin issuers are increasingly shaping reserve strategy based on credibility, collateral quality, and user confidence, with direct implications for global asset markets. Tether’s approach reflects rising geopolitical risk, persistent distrust of traditional financial systems, and the growing role of digital-asset firms in capital preservation.
U.S. Jobs Data Points to a Deeper Industrial Breakdown
November’s jobs report underscores a structural imbalance in the U.S. economy. Payroll growth of 64,000 coincided with a rise in unemployment to 4.6%, the highest level in four years, alongside declines in full-time employment and an increase in multiple-jobholders. These trends signal weakening productive capacity rather than labor market strength. Decades of underinvestment in manufacturing and real production have left the economy reliant on financial activity over output. Addressing this imbalance will require a coherent industrial strategy that prioritizes domestic production, regulatory efficiency, and capital formation to restore long-term economic resilience.
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