Journalist
Tanzeel Akhtar
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JPMorgan Chase’s $4 trillion asset-management division is launching its first tokenized money-market fund on the Ethereum blockchain, according to a Wall Street Journal report.
The bank will initially seed the vehicle with $100 million of its own capital before opening it to external investors from Tuesday.
JPMorgan Brings Money Markets Onchain
According to the WSJ report the private fund, called the My OnChain Net Yield Fund — or “MONY” — is built on JPMorgan’s in-house tokenization platform, Kinexys Digital Assets.
It will be available to qualified investors, defined as individuals with at least $5 million in investable assets and institutions with a minimum of $25 million. The minimum investment size is set at $1 million.
Tokenization Gains Momentum After GENIUS Act
The launch comes during a rise in momentum for tokenized financial products following the passage of the GENIUS Act earlier this year. The legislation established a US regulatory framework for dollar-backed stablecoins, helping to remove uncertainty around onchain settlement and digital representations of traditional assets.
Since then, Wall Street firms have accelerated efforts to tokenize everything from equities and bonds to real-world assets, viewing blockchain as a way to improve operational efficiency, reduce settlement times and expand investor access.
“There is a massive amount of interest from clients around tokenization,” said John Donohue, head of global liquidity at J.P. Morgan Asset Management told the WSJ.
“And we expect to be a leader in this space and work with clients to make sure that we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain,” adds Donohue.
How the MONY Fund Works
Investors can subscribe to the MONY fund through JPMorgan’s Morgan Money portal, the bank’s digital money-market investing platform. In return, investors receive digital tokens representing their fund shares, which are held in their crypto wallets.
Like traditional money-market funds, MONY invests in baskets of short-term, high-quality debt instruments. The fund accrues dividends daily and pays interest designed to track prevailing money-market yields, which have remained attractive amid a higher interest rate environment.
Stablecoins and Institutional Adoption
Subscriptions and redemptions can be made using either cash or USDC, the dollar-pegged stablecoin issued by Circle Internet Group. Allowing USDC settlement highlights how regulated financial products are increasingly incorporating crypto-native payment rails.
JPMorgan’s move builds on its broader blockchain strategy, which includes tokenized deposits, onchain settlement and wholesale payment infrastructure. While MONY is limited to institutional and high-net-worth investors, it shows a broader shift toward integrating blockchain into core financial products once considered far removed from crypto.
