JPMorgan has filed to launch a tokenized money market fund on Ethereum, allowing stablecoin issuers to hold reserve assets in a regulated, yield-generating product backed by US Treasurys.
According to a filing submitted Tuesday to the US Securities and Exchange Commission, the fund — called the OnChain Liquidity-Token Money Market Fund and trading under the ticker JLTXX — will invest in short-term US Treasury bills and overnight repurchase agreements backed by Treasurys or cash.
The fund is designed to help stablecoin issuers manage reserves while earning interest and complying with the GENIUS Act, the stablecoin-focused legislation signed into law in July.
JPMorgan said investors will need a minimum investment of $1 million, while the fund will charge an annual fee of 0.16% after waivers. The product will be managed by the bank’s blockchain division, Kinexys Digital Assets. The filing is expected to become effective Wednesday, though JPMorgan has not announced an official launch date.
The move comes as Wall Street firms continue expanding into blockchain-based tokenization, which many executives see as a faster and more efficient alternative to traditional financial infrastructure.
Data from RWA.xyz shows more than $32 billion worth of real-world assets, excluding stablecoins, are currently tokenized onchain. Assets ranging from bonds and stocks to commodities and real estate have increasingly moved onto blockchain networks.
Bloomberg ETF analyst Eric Balchunas called JPMorgan’s filing a “big deal,” noting that the 0.16% fee is relatively low for a money market fund designed to maintain a stable asset value.
JLTXX follows JPMorgan’s earlier tokenized investment product, the My OnChain Net Yield Fund (MONY), launched in December on Ethereum. The bank has also been testing blockchain-based settlement systems. Last week, JPMorgan participated in a pilot transaction involving a tokenized US Treasury fund transferred through the XRP Ledger and traditional banking rails to a Singapore bank account within seconds.
The filing also comes weeks after rival investment bank Morgan Stanley launched its own Stablecoin Reserves Portfolio, a money market product aimed at stablecoin issuers.
Despite growing interest in tokenization, regulators and global institutions continue to raise concerns about risks tied to blockchain-based finance. In an April report, the International Monetary Fund warned that tokenization could shift financial risks away from traditional banks and into shared ledgers and smart contract systems, potentially making crises harder to manage without clear legal and regulatory frameworks.
Industry figures, including “Shark Tank” investor Kevin O’Leary, have argued that broader crypto market structure legislation such as the CLARITY Act is needed to support long-term adoption.
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