JPMorgan Chase, a prominent global bank with $4 trillion in assets under management, is set to launch a tokenized money-market fund on Ethereum. This move is part of the bank’s deeper foray into blockchain-based finance, driven by rising demand from institutional clients, as reported by the Wall Street Journal on Monday.
The fund, named My OnChain Net Yield Fund (MONY), is initially funded with $100 million from the bank’s asset management division and is expected to open to external, qualified investors this week, according to the report.
The global bank is joining a trend among major financial institutions that are launching tokenized funds on the blockchain, with money-market funds at the forefront. Franklin Templeton was an early adopter, launching its BENJI fund in 2021, followed by BlackRock’s BUIDL fund in 2024, which has attracted $2 billion in assets so far, as per RWA.xyz data.
These financial products enable investors to utilize idle cash on blockchains to generate returns—similar to traditional money market funds, but offering quicker settlement times, 24/7 trading, and immediate visibility into ownership. They are increasingly used as reserve assets in decentralized finance (DeFi) protocols and as collateral in trading and asset management.
The asset class has expanded from $3 billion to $9 billion within a year, according to RWA.xyz data. A report by BCG and Ripple projects the broader tokenized asset market to reach $18.9 trillion by 2033.
“Our clients have shown significant interest in tokenization,” stated John Donohue, head of global liquidity at JPMorgan Asset Management, to WSJ.
JPMorgan developed MONY using Kinexys Digital Assets, the bank’s proprietary tokenization platform. This initiative is likely to serve as a test for the expansion of the bank’s onchain offerings.
“We aim to be a frontrunner in this domain and collaborate with clients to ensure our product lineup mirrors the options available in traditional money-market funds on blockchain,” Donohue added.
Similar to conventional money-market funds, MONY will invest in short-term debt instruments and provide daily interest payouts. Investors can redeem shares using cash or Circle’s USDC stablecoin. The fund is available to qualified investors, with a minimum investment requirement of $1 million.
Read more: JPMorgan Pushes Deeper Into Tokenization With Galaxy’s Debt Issuance on Solana
