This move marks a strategic shift as JPMorgan embraces blockchain technology.
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JPMorgan Chase has launched its first tokenized money market fund on the Ethereum $3,093.86 network in response to increasing institutional demand for blockchain-based financial products. Named the My OnChain Net Yield Fund (MONY), this innovative product begins with a $100 million initial investment provided by the bank’s asset management division.
ContentsInstitutional RolloutA Wave of Interest Institutional Rollout
With around $4 trillion in assets under management, JPMorgan plans to open MONY to qualified external investors as reported by the Wall Street Journal. The fund aims to combine the yield offered by traditional money market funds with the benefits of blockchain in terms of speed and transparency.
A Wave of Interest
JPMorgan’s move is the latest in a series of major financial institutions gravitating towards tokenized funds. Franklin Templeton had previously ventured into this space in 2021 with its BENJI fund, while BlackRock partnered with Securitize in 2024 to amass about $2 billion through its BUIDL fund.
Tokenized money market funds offer investors the opportunity to generate returns on idle cash using blockchain technology. These structures stand out from traditional funds due to their faster settlement processes, 24/7 trade capabilities, and real-time tracking of ownership data.
According to data from RWA.xyz, the overall size of tokenized money market funds has increased from $3 billion to $9 billion in one year. RWA.xyz tracks real-world assets tokenized on blockchain, transparently showcasing the total size, growth rates, and distribution of such on-chain financial products.
John Donohue, Global Head of Liquidity at JPMorgan Asset Management, highlighted the significant interest from clients in tokenized products, emphasizing the bank’s ambition to be a pioneer in this field. MONY is built on JPMorgan’s internally developed Kinexys Digital Assets platform and serves as a test for the bank’s expanding portfolio of on-chain products.
The fund will invest in short-term debt instruments, offering daily interest payments similar to conventional money market funds. Investors can redeem shares in cash or USDC stablecoin, with a minimum investment threshold set at $1 million for qualified investors.
Considering JPMorgan’s historically cautious and sometimes negative stance towards cryptocurrencies, the launch of MONY signifies a notable shift in strategy. The bank is steering clear of speculative crypto assets while harnessing blockchain technology for regulated financial products, indicating a preference to redefine crypto within its own rules and the traditional financial framework.
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