JPMorgan Launches First Ethereum-Based Tokenized Money-Market Fund

JPMorgan Chase has introduced a tokenized money-market fund on the Ethereum blockchain, according to The Wall Street Journal.

The launch represents JPMorgan’s first tokenized money-market fund. With this move, the bank becomes the largest Global Systemically Important Bank (G-SIB) to introduce such a product on a public blockchain. 

Given the firm’s roughly $4 trillion in assets under management (AUM), the development carries significant implications for global financial markets.

Fund Design and Investor Eligibility

Specifically, the product, named My OnChain Net Yield Fund (MONY), was initially funded with $100 million by JPMorgan Asset Management. The fund is scheduled to accept outside qualified investors starting this week.

However, access to the fund is restricted to qualified investors, with a minimum investment of $1 million. In practice, participants can subscribe to or redeem shares using either traditional cash or Circle’s USDC stablecoin.

Structurally, MONY resembles a conventional money-market fund. It invests in short-term debt instruments and distributes interest daily. However, the key distinction lies in its operational framework.

By operating on Ethereum, the fund enables near-instant settlement and continuous access, allowing investors to deploy idle capital more efficiently. Additionally, the on-chain structure provides real-time transparency into ownership and fund activity.

JPMorgan developed the fund using Kinexys Digital Assets, its in-house tokenization platform. The bank views MONY as a proving ground for future on-chain investment vehicles, with insights from this launch expected to inform a broader rollout of blockchain-based products.

Part of a Broader Industry Shift

JPMorgan’s entry follows similar initiatives by other major asset managers. For instance, Franklin Templeton introduced its BENJI tokenized fund in 2021. Later, in 2024, BlackRock entered the space with its BUIDL fund, developed in partnership with Securitize.

According to RWA.xyz, BlackRock’s BUIDL fund has accumulated $2 billion in assets. The same data provider shows that tokenized money-market funds grew from $3 billion to $9 billion within a year.

Market Growth and Strategic Outlook

Beyond money-market funds, the momentum continues across the broader tokenization landscape. In fact, a joint report from Ripple and BCG estimates that the market for tokenized assets could reach $18.9 trillion by 2033, signaling sustained institutional adoption.

In this context, John Donohue, head of global liquidity at JPMorgan Asset Management, told The Wall Street Journal that client interest in tokenization is substantial.

He added that on-chain systems can meaningfully improve transaction speed and operational efficiency, thereby reinforcing the bank’s long-term commitment to this technology.