Key takeaways
JPMorgan has tokenized a money market fund and launched it on the Ethereum mainnet.
The fund is composed of US Treasurys and Treasury-backed repos, featuring daily reinvestment of dividends.
Public Ethereum positions MONY alongside stablecoins, tokenized Treasurys, and existing onchain liquidity.
Attention now shifts toward collateral usage, secondary transfers, and the likelihood of other major banks following suit.
JPMorgan Asset Management has introduced a conventional product on the Ethereum blockchain: a tokenized money market fund named the My OnChain Net Yield Fund (MONY).
Launched on December 15, 2025, it’s powered by the bank’s Kinexys Digital Assets platform. Investors can access the fund via Morgan Money, with ownership interests represented as blockchain tokens sent directly to their onchain addresses.
This is noteworthy as money market funds are typical vehicles for institutions to manage short-term cash. They are designed for liquidity and steady returns, usually backed by straightforward assets.
MONY aligns perfectly with this model. It allocates funds into US Treasurys and Treasury-collateralized repos, provides daily dividend reinvestment, and permits qualified investors to subscribe and redeem using either cash or stablecoins. JPMorgan has also indicated plans for internal seeding of the fund before broader availability.
Choosing Ethereum as the settlement layer further amplifies the launch’s significance.
Did you know? A Treasury-collateralized repo is a short-term, secured loan where one party supplies cash while the other posts US Treasurys as collateral, agreeing to reverse the trade later at a marginally higher price. The price difference represents the interest.
So, what exactly has JPMorgan launched?
MONY represents a money market fund delivered onchain. Investors buy fund interests that are backed by a secure cash portfolio comprising US Treasury securities and repo agreements fully collateralized by Treasurys, with ownership indicated as a token dispatched to the investor’s Ethereum address.
This setup operates through two JPMorgan systems:
Morgan Money serves as the interface for qualified investors to subscribe, redeem, and manage their positions.
Kinexys Digital Assets acts as the tokenization layer, responsible for issuing and managing the onchain representation of those fund interests.
The aim is to leverage tokenization to enhance transparency, facilitate peer-to-peer transfers, and enable the use of these holdings as collateral in blockchain-based markets.
On the product front, MONY retains familiar mechanics, with daily dividend reinvestment and managing subscriptions and redemptions through Morgan Money using cash or stablecoins.
Why “public Ethereum” is so interesting
JPMorgan aims to integrate into onchain systems already employed by counterparties, such as stablecoins for settlement, custody, reporting workflows, analytics, compliance tools, and distribution mechanisms.
Ethereum is also the focal point for crypto’s cash activity. RWA.xyz estimates stablecoins at around $299 billion, forming the liquidity foundation that tokenized funds frequently engage with for settlement and cash management.
In terms of cash-like assets, tokenized Treasurys amount to $8.96 billion. A money market-style product fits seamlessly here as it coexists with the assets and behaviors investors typically leverage to manage funds, enhance liquidity, and provide collateral.
Additionally, RWA.xyz’s network analysis reveals Ethereum accounting for approximately two-thirds of the total tokenized RWA value.
For regulated products required to shift between approved counterparties, this concentration is crucial.
Did you know? “Public Ethereum” denotes the Ethereum mainnet, an open network accessible to all. While people often refer to “Ethereum,” specifying “public” clarifies that this is not a closed, permissioned, bank-operated Ethereum-style network.
When cash yield goes onchain
MONY maintains a conservative portfolio, holding US Treasurys and Treasury-collateralized repos, along with daily reinvestment of dividends, with ownership denoted as a token at an investor’s blockchain address. When yield-bearing cash is onchain, it can integrate into various workflows.
1) 24/7 treasury operations
Positions can coexist with stablecoin balances and other tokenized assets, with subscriptions and redemptions accessed via Morgan Money and the token layer managed by Kinexys Digital Assets. For institutions operating portions of their cash and settlement processes onchain, this creates a more efficient loop.
2) Collateral mobility
JPMorgan emphasizes the potential for more extensive collateral usage, along with transparency and ease of peer-to-peer transfer. Collateral is where time and costs can accumulate due to eligibility checks, handoffs, settlement scheduling, and transfer controls. A tokenized money market fund share offers approved parties a streamlined way to transfer value, expedite settlements, and impose onchain rules regarding who can hold it.
3) The cash leg for tokenized markets
Tokenized securities, funds, and real-world assets (RWAs) necessitate a place to manage liquidity between trades and settlements. A yield-bearing cash product on Ethereum naturally fulfills this role as onchain markets expand.
The competitive landscape
MONY enters a competitive space filled with notable players.
BlackRock’s BUIDL was launched in 2024 as a tokenized fund on Ethereum, with recent enhancements focusing on features that institutions prioritize, including daily dividends, 24/7 peer-to-peer transfers, wider network reach, and moves towards collateral integrations.
Franklin Templeton has been pursuing a similar concept with its onchain money market fund, where BENJI tokens symbolize shares in FOBXX.
Additionally, the market infrastructure layer sees BNY Mellon and Goldman Sachs discussing record-tokenization methods aimed at facilitating the movement of existing money market fund shares through institutional processes.
The market seems to be undergoing a construction phase, characterized by tokenized cash products, enhanced transfer infrastructure, and clearer trajectories for collateral usage.
McKinsey’s base case estimates the value of tokenized financial assets at about $2 trillion by 2030, excluding crypto and stablecoins.
Meanwhile, Calastone estimates over $24 billion in tokenized assets under management as of June 2025, with money market and Treasury bond funds comprising a significant portion.
Practicality and impact
MONY introduces a regulated cash product onto public Ethereum, maintaining strict access control. It is offered as a Rule 506(c) private placement for accredited investors, with distribution facilitated through Morgan Money. Eligibility assessments are integral to the product’s design, and the investor base remains precisely defined.
This framework dictates how the token can be transferred. A tokenized fund share can incorporate transfer regulations, compliance gateways, and operational controls that govern who can possess it, who may receive it, and how redemptions are managed in various circumstances. JPMorgan’s risk disclosures regarding the product and its blockchain application indicate a rollout designed around oversight and auditability.
The Ethereum mainnet serves as the launch site, and usage patterns might change with economic factors. Mainnet fees and operational costs affect asset movement frequency and can influence scaling decisions over time, including potential activity on layer 2s as volumes rise.
It will be interesting to see how this develops as the product’s real-world behavior becomes clear.
Did you know? Rule 506(c) is a US securities exemption that permits an issuer to publicly advertise a private offering, provided all purchasers are accredited investors and the issuer verifies that status.
What now?
Three indicators will clarify the extent of this initiative.
Firstly, whether MONY tokens start being utilized as collateral within broader onchain systems, such as repo-style arrangements, secured loans, hedging, and prime-brokerage-like frameworks, which aligns with JPMorgan’s focus on “expanded collateral usage.”
Secondly, whether other global systemically important banks (GSIBs) follow JPMorgan into public chains. If peers adopt the same settlement-layer option, it will indicate that public infrastructure is becoming a primary venue for tokenized cash products.
Lastly, whether stablecoin settlement, including USDC (USDC) in reported coverage, grows beyond subscriptions and redemptions to include secondary transfers and deeper integrations. That transition would signify a shift in distribution towards resembling market infrastructure rather than merely a wrapped fund product.
If MONY is recognized as collateral and starts circulating through secondary transfers, not just subscriptions and redemptions, it transitions into the settlement cycle rather than remaining an isolated money market fund.
Should other GSIBs launch analogous cash products on the Ethereum mainnet, it would suggest a likely default venue if the trend of tokenized cash expands.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
