JPMorgan Chase Introduces a Tokenized Money Market Fund on Ethereum Blockchain

JPMorgan Chase has launched its first tokenized money-market fund on the Ethereum blockchain. The global bank has $4 trillion in assets under management and is finally addressing the growing demand from its institutional clients. This move makes JPMorgan Chase the first Global Systemically Important Bank or GSIB to introduce a tokenized money market fund on a public blockchain.

My OnChain Net Yield Fund (MONY)

The product is called the My OnChain Net Yield Fund (MONY) and has been seeded with $100 million from the bank’s asset management division and is expected to open to qualified external investors this week. The Wall Street Journal reported the launch, citing the growing institutional interest in blockchain-based financial products.

Money market funds have emerged as a leading use case for tokenization, enabling investors to earn yield on idle cash while benefiting from faster settlement, 24/7 trading access, and real-time transparency of ownership. These blockchain native features also allow tokenized funds to be used as a reserve asset or collateral within a decentralized finance (DeFi) application.

JPMorgan Chase joins a growing list of major financial institutions embracing tokenization. Franklin Templeton launched its BENJI tokenized fund in 2021, whereas BlackRock entered the market with the BUIDL fund in partnership with Securitize. As per RWA.xyz data, BlackRock’s product has attracted approximately $2 billion in assets to date.

The tokenized money market sector has expanded rapidly, growing from $3 billion to $9 billion in assets over the past year. The broader tokenized assets market is projected to reach $18.9 trillion by 2033, as per a report by BCG and Ripple.

John Donohue, head of global liquidity at JPMorgan Asset Management, told the Wall Street Journal, “There is a massive amount of interest from clients around tokenization.”

MONY is built on Kinexys Digital Assets, JPMorgan’s in-house tokenized platform. It is expected to serve as a testing ground for expanding the bank’s on-chain product offerings. Donohue said in a statement, “Tokenization can fundamentally change the speed and efficiency of transactions, adding new capabilities to traditional products. We believe that financial products will increasingly transact this way, and we’re excited about the opportunities this creates for our clients and for the whole industry.”

Like traditional money market funds, MONY will invest in short-term debt instruments and pay interest daily. Investors will be able to redeem shares using cash or Circle’s USDC stablecoin. Access to the fund is limited to qualified investors, with a minimum investment of $1 million.