JPMorgan Chase (JPM) shares pushed to record territory Monday, and it's not hard to see why investors are excited. The banking giant just made a pretty significant move into blockchain technology, launching the first tokenized money market fund from a major global bank on a public blockchain.
Blockchain Meets Wall Street
JPMorgan's asset management division announced Monday that its tokenized money market fund is now live on the Ethereum blockchain. This isn't some experimental crypto play—the fund sticks to the boring, safe stuff: U.S. Treasury securities and repurchase agreements backed entirely by Treasuries.
What makes this interesting is the tokenization angle. John Donohue, who heads global liquidity at JP Morgan Asset Management, pointed out that tokenization should fundamentally change how quickly and efficiently these transactions happen. Translation: moving money around could get faster and cheaper, which matters when you're dealing with institutional-sized trades.
Bouncing Back From Expense Concerns
The timing of this rally is notable. JPMorgan shares actually dipped last week after the company projected expenses would hit roughly $105 billion next year. That's higher than the Street was expecting—analysts had penciled in around $100.84 billion. Marianne Lake, the bank's consumer and community banking chief, explained that growth and volume-related costs would drive most of that increase.
But investors seem to be looking past the expense guidance and focusing on the bigger picture. The stock bounced back hard this week and briefly touched fresh all-time highs Monday before settling back slightly.
Technical Picture Looks Strong
From a technical standpoint, JPMorgan is showing serious strength. The stock is trading 4.2% above its 20-day simple moving average, 4.4% above its 50-day, and 14% above its 200-day—all signs of solid upward momentum.
The RSI sits at 58.10, which puts it in neutral territory. That means there's still room to run higher without the stock getting overbought. The MACD is also sitting above its signal line, another bullish indicator.
Key support is around $291, while resistance showed up near the session high of $322.88. If the stock can punch through that resistance level, traders will be watching for a potential breakout. A drop back to support might signal either a reversal or some consolidation.
Zooming out, the stock has gained 33.66% over the past 12 months, reflecting the strong bullish trend that's been in place. That kind of performance gives bulls plenty of confidence, even with the expense concerns lingering in the background.
JPM Price Action: JPMorgan Chase shares were up 0.52%, trading at $320.18 at the time of publication.