Join Our Telegram channel to stay up to date on breaking news coverage
Wall Street banking giant JPMorgan is deepening its presence in the tokenized finance space and has launched its first money market fund through its $4 trillion asset management arm.
In a Dec. 15 announcement, the firm said that the My OnChain Net Yield Fund (“MONY”) is now available on the Ethereum blockchain. It added that the fund is powered by JPMorgan’s own Kinexys Digital Assets platform, which is a multi-chain asset tokenization solution.
The tokenized fund provides investors with increased transparency, peer-to-peer transferability, as well as the potential for broader collateral usage within the blockchain ecosystem, JPMorgan added.
According to the announcement, JPMorgan is now the largest globally systemically important bank (GSIB) to launch a tokenized money market fund on a public blockchain.
JPMorgan went on to say that MONY is a 506(c) private placement fund that provides qualified investors the opportunity to earn US dollar yields by subscribing through the bank’s trading platform, Morgan Money. On the platform, users will also be able to receive tokens at their blockchain addresses, the firm said.
According to a report from the Wall Street Journal, MONY is seeded with $100 million from the bank’s asset management division and is set to open this week.
In the announcement, JPMorgan said that MONY will only invest in traditional US Treasury securities and repurchase agreements that are fully collateralized by US Treasury securities.
Daily dividend reinvestment will also be available for investors, allowing them to subscribe and redeem using either cash or stablecoins through the Morgan Money platform.
“Morgan Money is the first institutional liquidity trading platform to integrate traditional and on-chain assets offering investors access to a full-range of money market products,” JPMorgan said.
Donohue added that the launch of MONY “marks a significant step forward in how assets will be traded in the future.”
Morgan Money was launched in 2019, and provides a real-time investment dashboard and a single access point for operations. This gives investors the ability to build stronger liquidity strategies.
With the launch of MONY, JPMorgan is the latest high-profile financial giant to launch a tokenized fund on a blockchain. Currently, money market funds lead the charge.
Franklin Templeton was one of the first traditional finance firms to launch a tokenized fund with the launch of BENJI in 2021. BlackRock followed with the launch of its BUIDL fund in 2024 with tokenization specialist Securitize. BUIDL currently has over $1.8 billion in assets, data from RWA.xyz shows.
Those funds enable investors to park idle cash on blockchains and earn a yield. This is similar to a money market fund but includes faster settlement times, around-the-clock trading, and the ability to view ownership in real-time.
The tokenized funds are also being increasingly used as a reserve asset for decentralized finance (DeFi) protocols and as collateral in trading and asset management.
Read more on InsideBitcoins.com
