JP Morgan rolls out tokenized money market fund on Ethereum blockchain

Banking giant JP Morgan rolled out a tokenized money market fund, My OnChain Net Yield Fund (MONY), on the Ethereum blockchain on Monday.

The launch marks the first tokenized fund from JP Morgan, as it becomes the largest Global Systemically Important Bank (GSIB) with an onchain money market fund, according to a statement on Monday.

The fund, structured as a 506(c) private placement, allows qualified investors to earn yields on the US Dollar through the firm's Morgan Money liquidity management platform. Morgan Money has become the first institutional liquidity trading platform to integrate both traditional and onchain assets, JP Morgan said.

MONY will be seeded with $100 million in capital from JP Morgan before opening to qualified investors on Tuesday. The fund is available exclusively to individuals holding at least $5 million in assets or institutions with $25 million or more, with a minimum investment requirement of $1 million.

JP Morgan manages $4.6 trillion in assets as of Q3 and holds a market capitalization of $867 billion.

MONY invests exclusively in US Treasury securities and repurchase agreements fully collateralized by US Treasury securities, offering daily dividend reinvestment. Investors can subscribe and redeem using either cash or the USDC stablecoin through the Morgan Money platform. The fund is powered by Kinexys Digital Assets, JP Morgan's asset tokenization solution.

George Gatch, CEO of JP Morgan Asset Management, stated that the firm is harnessing technology alongside deep expertise in active management to provide clients with advanced, innovative, and cost-effective capabilities that help them achieve their investment goals.

John Donohue, Head of Global Liquidity at JP Morgan Asset Management, noted that tokenization could fundamentally change the speed and efficiency of transactions for money market funds.

“This marks a significant step forward in how assets will be traded in the future, and we're excited about the opportunities this creates for our clients and for the whole industry," said Donohue.

He expressed expectations that other GSIBs would follow JP Morgan's lead in providing clients with greater flexibility in investing in money market funds.

Tokenization has accelerated in recent times

The move follows a growing trend of asset tokenization among traditional financial institutions. Franklin Templeton launched the first onchain mutual fund in 2021 with its Franklin OnChain US Government Money Fund, which operates across multiple blockchains, including Ethereum, Avalanche, Stellar and Aptos.

BlackRock entered the tokenized money market space in March 2024 with its BUIDL fund, developed in partnership with Securitize. The fund has grown to a market capitalization of over $2 billion and operates across eight different networks, including Ethereum and Solana.

JP Morgan has shown increased blockchain activity in recent weeks. Last month, the bank arranged commercial paper issuance on Solana for Galaxy Digital and reportedly debuted a deposit token on Coinbase's Base network. The firm also proposed structured notes tied to Bitcoin's price.

The tokenized fund launch comes amid strong regulatory momentum in the crypto industry under President Trump's administration. The Securities and Exchange Commission (SEC) Chair Paul Atkins announced Project Crypto, aiming to bring the US financial market onchain. Nasdaq has also filed with the SEC to list and trade tokenized stocks and exchange-traded products on its platform.