JPMorgan Chase has launched its first tokenized money market fund on the Ethereum (ETH) blockchain.
The fund, called My OnChain Net Yield Fund (MONY), went live Sunday with $100 million in initial capital from the bank's asset management division.
John Donohue, head of global liquidity at J.P. Morgan Asset Management, said client demand for tokenization drove the launch.
"There is a massive amount of interest from clients around tokenization," Donohue told the Wall Street Journal.
What Happened
The MONY fund operates on Ethereum through JPMorgan's Kinexys Digital Assets platform.
Qualified investors can subscribe using either cash or Circle's USDC stablecoin with a $1 million minimum investment.
The fund holds short-term debt instruments and pays interest daily.
Investors receive digital tokens representing their fund shares, which can be transferred on-chain to other pre-approved participants.
JPMorgan's $4 trillion asset management arm joins competitors BlackRock and Franklin Templeton in offering blockchain-based money market products.
BlackRock's BUIDL fund has attracted approximately $2 billion in assets since launching in March 2024.
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Why It Matters
The launch signals growing institutional confidence in public blockchain infrastructure for regulated financial products.
Tokenized money market funds have grown to $9 billion from $3 billion over the past year, according to RWA.xyz data.
These on-chain vehicles offer faster settlement times, 24/7 trading access, and real-time ownership transparency compared to traditional money market funds.
JPMorgan plans to expand MONY access over time and introduce additional currencies, subject to regulatory approval.
The fund represents a shift from closed, permissioned blockchain systems toward public infrastructure for institutional finance.
Major financial institutions increasingly view deposit-based tokenized products as alternatives to stablecoins for institutional clients.
These yield-bearing instruments can integrate with regulated banking frameworks while offering blockchain efficiency benefits.
The broader tokenized asset market is projected to reach $18.9 trillion by 2033, according to a BCG and Ripple report.
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