JPMorgan Chase is expanding its steps in blockchain-based finance and preparing to launch its first tokenized money market fund on the Ethereum network. According to the Wall Street Journal, this new product, developed by the bank's asset management arm which manages approximately $4 trillion in assets, will be offered under the name My OnChain Net Yield Fund, or MONY for short. JPMorgan plans to launch the fund with $100 million of its own capital before opening it to external investors.
JPMorgan launches first tokenized money market fund
MONY operates on JPMorgan's in-house tokenization infrastructure called Kinexys Digital Assets. This infrastructure allows traditional financial products to be represented on the blockchain through digital tokens. The fund will only be open to individuals and institutions with "qualified investor" status. Accordingly, a minimum investment asset requirement of $5 million is sought for individual investors, while this threshold is set at $25 million for institutional investors. The minimum investment amount to enter the fund is $1 million. Like traditional money market funds, MONY holds a portfolio of short-term, high-quality debt instruments. The fund's primary goal is to offer returns that are generally higher than bank deposits. Interest income and dividends accrue daily. Investors can participate in the fund through JPMorgan's digital investment platform, Morgan Money, and hold digital tokens representing their shares in their own crypto wallets. Another notable aspect of the fund is that transactions can be made using stablecoins in addition to cash. Investors can conduct fund entry and exit transactions using the USDC stablecoin, a dollar-pegged stablecoin issued by Circle. This approach demonstrates the increasing adoption of crypto-native payment infrastructures by regulated financial products. Such solutions, particularly those aimed at the efficient use of non-interest-bearing stablecoin balances, have long been in demand within the crypto ecosystem. John Donohue, Head of Global Liquidity at JPMorgan Asset Management, notes that there is significant interest from clients in tokenization. According to Donohue, the bank aims to make options similar to those offered in traditional money market funds available on the blockchain. This approach signals that tokenization is no longer just an experimental area but is beginning to become part of mainstream finance. This move coincides with a period in which the regulatory framework for digital assets in the US is becoming clearer. The GENIUS Act, passed this year, created a federal framework for dollar-denominated stablecoins. In addition, developments around the Clarity Act signaled a more constructive approach to which institutions will oversee blockchain-based financial products. This regulatory clarity is encouraging large financial institutions to take bolder steps in tokenizing funds, securities, and other real-world assets. Interest in the tokenization of real-world assets is rapidly increasing. By 2025, the total market capitalization of tokenized real-world assets reached a record high of $38 billion. BlackRock is the largest player in this field with a tokenized money market fund worth over $1.8 billion. Goldman Sachs and Bank of New York Mellon also announced plans to collaborate on digital assets linked to tokenized money market funds earlier this year. The Ethereum-based MONY fund demonstrates the continuation of JPMorgan's recent blockchain initiatives, as the bank recently issued a commercial bond on the Solana network for its Galaxy Digital subsidiary, using USDC in the transactions.
