JPMorgan, one of the largest banks globally, is enhancing its footprint in tokenized finance with the launch of its inaugural money market fund through its $4 trillion asset management division.
The fund, named My OnChain Net Yield Fund, will trade under the ticker MONY and is accessible on the public Ethereum blockchain, according to an announcement shared with Cointelegraph on Monday.
Initiated via Kinexys Digital Assets, JPMorgan’s proprietary tokenization platform, MONY is a 506(c) private placement fund that provides qualified investors the opportunity to earn yields in US dollars by subscribing through its institutional trading platform, Morgan Money.
“With Morgan Money, tokenization can fundamentally transform the speed and efficiency of transactions, adding new functionalities to traditional products,” stated John Donohue, head of global liquidity at J.P. Morgan Asset Management.
MONY investors can obtain tokens at their blockchain addresses
By launching MONY, JPMorgan has positioned itself as the largest global systemically important bank to unveil a tokenized money market fund (MMF) on a public blockchain, as noted in the announcement.
The tokenization of the fund offers enhanced transparency, peer-to-peer transferability, and the potential for wider collateral utilization within the blockchain ecosystem, it stated.
“This signifies a major advancement in how assets will be traded moving forward,” Donohue remarked, emphasizing the role of Morgan Money, where qualified investors can access the fund and receive tokens at their blockchain addresses.
Launched in 2019, Morgan Money offers a real-time investment dashboard and a single access point for operations, enabling investors to strengthen liquidity strategies.
“Morgan Money is the first institutional liquidity trading platform to integrate traditional and on-chain assets, providing investors with access to a comprehensive range of money market products,” stated JPMorgan.
Subscriptions and redemptions in cash or stablecoins
As per the announcement, MONY will exclusively invest in traditional US Treasury securities and repurchase agreements fully secured by US Treasury securities, allowing qualified investors to earn yield while holding the token on the blockchain.
The fund also provides daily dividend reinvestment, enabling investors to subscribe and redeem using cash or stablecoins through the Morgan Money platform.
Cointelegraph reached out to JPMorgan regarding which stablecoins would be supported in the offering, but no response was received at the time of publication.
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JPMorgan’s launch of MONY represents another significant milestone in the competition among traditional financial institutions to roll out regulated tokenized products. This news follows weeks after the company completed its first transaction through its upcoming fund tokenization platform, Kinexys Fund Flow, anticipated to launch in 2026.
On Thursday, JPMorgan also revealed the issuance of a US commercial paper for Galaxy Digital Holdings on the Solana blockchain, marking one of the earliest debt issuances ever executed on a public blockchain.
