JPMorgan launches a $100 million tokenized fund on Ethereum: WSJ

Wall Street giant JPMorgan has rolled out its first tokenized money market fund using Ethereum and USDC.

The launch highlights how one of Wall Street’s largest banks is moving traditional cash products to public blockchains as customer demand for on-chain returns and faster settlement continues to grow.

JPMorgan Expands Tokenization Push With MONY Fund

According to one report by the Wall Street Journal The new vehicle, called the My OnChain Net Yield Fund, or MONY, is JPMorgan Asset Management’s first tokenized money market fund and is backed by the bank’s Kinexys Digital Assets platform. The fund is available to individuals with at least $5 million in investments and institutions with a minimum of $25 million, with an entry requirement of $1 million.

Investors can sign up through JPMorgan’s Morgan Money portal and receive digital tokens representing their fund shares in a crypto wallet. Subscriptions and redemptions can be made with cash or USDC, the dollar-pegged stablecoin issued by Circle. Like traditional money market funds, MONY holds short-term debt instruments and accrues income on a daily basis.

John Donohue, head of global liquidity at JPMorgan Asset Management, said client interest in tokenization has grown sharply since the passage of the Genius Act earlier this year, which created a clearer U.S. framework for stablecoins and tokenized dollars.

How JPMorgan fits into a broader industry shift

JPMorgan’s move follows a series of similar launches by major asset managers looking to combine blockchain rails with well-known financial products. In July, Goldman Sachs and BNY Mellon said they would collaborate on digital tokens tied to money market funds managed by companies like BlackRock and Fidelity.

Outside the US, Europe’s largest asset manager Amundi launched a tokenized money market fund on Ethereum in November, recording its first on-chain transaction earlier that month.

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Ethereum has become the network of choice for these products, hosting the majority of tokenized real-world assets and stablecoins. BlackRock’s BUIDL fund, with more than $2 billion under management, remains the biggest example.