Automating money market funds has become more urgent as a result of the COVID-19 crisis. Consequently, money market funds were faced by demands for redemptions in mid-March as fearful clients wanted liquidity. In March the US Federal reserve unveiled a new program to lend to financial institutions buying shares in “prime” money market mutual funds, whose investments include corporate bonds. 

JP Morgan AM said that it would initially use Calastone to enhance its entire settlements process, starting with its Morgan Money offering. Calastone digitalizes the investment and reporting process for money market portals, fund providers and investors. 

“Traditional models remain under immense pressure and have very quickly been seen to come up short. The key to managing this new post-COVID world, and to staying attractive in it, sits in embracing new, smart technologies – and making the switch from manual to automated,” Ed Lopez, Calastone’s chief revenue officer, said. 

JP Morgan AM oversees a total of $1.9 trillion of assets.