JPMorgan Chase, one of the world’s largest banks with about $4 trillion in assets under management, has launched a tokenized money-market fund on the Ethereum blockchain, deepening its push into blockchain-based finance.
The launch comes as institutional interest grows in onchain financial products that mirror traditional investment vehicles while using blockchain technology to improve efficiency and settlement.
The fund, called the My OnChain Net Yield Fund (MONY), is JPMorgan’s first tokenized money-market product and makes it the largest global systemically important bank to bring such a fund to a public blockchain.
$100 Million Seed Investment
MONY was seeded with $100 million from JPMorgan Asset Management and is expected to open to outside, qualified investors this week, according to a report by The Wall Street Journal. Participation will be limited to eligible investors, with a minimum investment of $1 million.
Like traditional money-market funds, MONY will invest in short-term debt instruments and earn interest on a daily basis. Investors will be able to subscribe and redeem shares using either cash or Circle’s USDC stablecoin, allowing for both traditional and blockchain-based settlement.
Part of a Growing Tokenization Trend
JPMorgan joins a growing list of major financial institutions moving into tokenized investment products, particularly in the money-market space.
Franklin Templeton entered the market in 2021 with its BENJI fund, while BlackRock followed in 2024 with its BUIDL fund, developed with tokenization firm Securitize. The BUIDL fund has since attracted about $2 billion in assets, according to data from RWA.xyz.
Money-market funds have become one of the most common uses of tokenization because they are familiar, relatively low-risk products that can quickly benefit from blockchain features such as faster settlement and around-the-clock trading.
Why Institutions Are Embracing Tokenized Funds
Tokenized money-market funds allow investors to hold idle cash on blockchain networks while earning yield, similar to traditional funds but with added operational benefits. These include near-instant settlement, 24/7 access, and real-time transparency into ownership.
Beyond cash management, tokenized funds are increasingly being used within decentralized finance as reserve assets and collateral, further connecting traditional finance with onchain markets.
A Fast-Growing Market
The market for tokenized money-market funds has expanded rapidly. Data from RWA.xyz shows the sector has grown to about $9 billion, up from roughly $3 billion a year ago. Looking ahead, a joint report from Boston Consulting Group and Ripple estimates that the broader market for tokenized real-world assets could reach $18.9 trillion by 2033.
“There is significant client interest in tokenization,” John Donohue, head of global liquidity at JPMorgan Asset Management, told The Wall Street Journal.
Built on JPMorgan’s Kinexys Platform
The MONY fund is built on Kinexys Digital Assets, JPMorgan’s internal tokenization platform. The launch is expected to serve as a foundation for expanding the bank’s onchain investment offerings and testing how traditional asset management products can scale on public blockchains.
“Tokenization has the potential to meaningfully improve the speed and efficiency of financial transactions,” Donohue said. “We expect more financial products to move in this direction over time.”
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