0
0
JPMorgan Chase has joined a growing group of traditional financial firms bringing blockchain technology to mainstream investment products, unveiling its first tokenized money-market fund on the Ethereum network.
The move, reported by The Wall Street Journal, comes as Wall Street deepens its push into tokenization following new US legislation that clarified the regulatory framework for digital assets tied to traditional finance.
The banking group’s $4 trillion asset-management arm is seeding the fund with $100 million of its own capital before opening it to outside investors.
The fund, known as My OnChain Net Yield Fund, or MONY, will be available to qualified investors from Tuesday.
MONY is supported by JPMorgan’s tokenization platform, Kinexys Digital Assets, and is structured as a private fund.
Eligibility is limited to individuals with at least $5 million in investable assets and institutions with a minimum of $25 million, with a $1 million investment threshold.
Investors can subscribe through JPMorgan’s Morgan Money portal, receiving digital tokens representing their holdings directly into crypto wallets.
Like traditional money-market funds, MONY invests in baskets of short-term, low-risk debt securities that typically offer higher yields than bank deposits.
The fund pays interest and accrues dividends daily.
Investors can subscribe to and redeem shares using either cash or USDC, the dollar-pegged stablecoin issued by Circle Internet Group.
The use of stablecoins allows transactions to settle directly on blockchain infrastructure without moving funds back into the traditional banking system.
JPMorgan says this structure gives investors exposure to familiar cash-management products while keeping assets fully on-chain.
Interest in tokenized finance has accelerated since the passage of the Genius Act earlier this year, which established a regulatory framework for stablecoins.
The legislation has encouraged banks and asset managers to explore blockchain-based versions of established products.
“There is a massive amount of interest from clients around tokenization,” said John Donohue, head of global liquidity at JP Morgan Asset Management.
“And we expect to be a leader in this space and work with clients to make sure that we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain.”
Tokenization is seen as a way to reduce settlement times, lower administrative costs, and improve transparency for asset managers.
Money-market funds, a cornerstone of cash management since the 1970s, have grown in popularity amid higher interest rates.
Assets in money funds stand at about $7.7 trillion, up from $6.9 trillion at the start of 2025, according to the Investment Company Institute.
At the same time, the stablecoin market has expanded rapidly, with total market capitalization exceeding $300 billion, according to CoinGecko.
Tokenized money-market funds appeal to crypto-native investors because they allow idle stablecoin balances to earn yield, addressing a long-standing drawback of holding cash-like assets on blockchain networks.
JPMorgan’s move follows similar initiatives by major rivals.
BlackRock operates the largest tokenized money-market fund, with more than $1.8 billion in assets.
Goldman Sachs and Bank of New York Mellon have also announced partnerships to tokenize money-market fund ownership for institutional clients.
Beyond money funds, JPMorgan has recently tokenized a private-equity fund for wealthy clients, while trading platforms such as Robinhood, Kraken, and Gemini have launched tokenized stocks and exchange-traded funds for non-US investors.
The launch of MONY underscores how traditional finance is increasingly converging with blockchain infrastructure, as banks test whether digital rails can support some of the world’s most conventional investment products.
The post JPMorgan rolls out tokenized money-market fund on Ethereum: report appeared first on Invezz
0
0
Manage all your crypto, NFT and DeFi from one placeSecurely connect the portfolio you’re using to start.
