JPMorgan files to launch another Ethereum-based tokenized Treasury fund

JPMorgan filed a registration statement with the US Securities and Exchange Commission (SEC) on Tuesday to launch the JPMorgan OnChain Liquidity-Token Money Market Fund, trading under the ticker JLTXX.

JLTXX is a tokenized government money market fund on the Ethereum blockchain. The fund introduces Token Class Shares, allowing investors to interact with fund shares through blockchain-based transactions while maintaining traditional book-entry ownership records.

JPMorgan expands tokenization strategy with blockchain-based Treasury fund

The filing states that the fund will primarily invest in short-term US Treasury securities and overnight repurchase agreements fully collateralized by US Treasury securities or cash. The strategy is designed to maintain a stable net asset value of $1.00 per share while generating current income and preserving liquidity.

JPMorgan noted that the fund will only purchase US Treasury securities with maturities of 93 days or less.

The filing also stated that the portfolio will invest exclusively in US dollar-denominated securities and seek assets presenting minimal credit risk. A portion of assets will remain in cash to support redemptions and liquidity needs.

JLTXX will be powered by Kinexys Digital Assets, JPMorgan’s blockchain division. Ethereum is currently the only supported blockchain network, although the filing leaves room for expansion to additional chains in the future.

Under the structure, token balances recorded on Ethereum are intended to correspond one-to-one with shares recorded in the fund’s official Investor Register.

The system uses a permissioned overlay on Ethereum, including allow-listed addresses, smart contracts for minting and burning tokens, alongside compliance controls tied to anti-money laundering (AML) and regulatory requirements. The setup also enables peer-to-peer token transfers, subject to processing and verification through the fund’s official register.

JPMorgan added that the fund is structured to qualify as a “government money market fund” under Rule 2a-7 of the Investment Company Act, requiring at least 99.5% of assets to be invested in cash or US government-backed securities.

The filing also stated that the strategy is intended to satisfy reserve asset requirements under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, making the product potentially suitable for stablecoin issuers seeking compliant reserve assets.

The move expands JPMorgan’s growing tokenization efforts and follows the launch of its My OnChain Net Yield Fund (MONY) in December. It also comes as large financial institutions increasingly explore real-world assets (RWAs) as tokenized versions of their traditional products.