NEW YORK —J.P. Morgan Chase is launching its first tokenized money market fund, deepening Wall Street’s push to bring traditional financial products onto blockchain technology, according to a new report.
The bank’s asset management arm is deploying the fund on the Ethereum blockchain and plans to seed it with $100 million of its own capital before opening it to outside investors, the Wall Street Journal reported. The private fund, called the My OnChain Net Yield Fund, or MONY, will be supported by JPMorgan’s tokenization platform, Kinexys Digital Assets.
According to the report, the fund will be available to individual investors with at least $5 million in investments and to institutions with a minimum of $25 million. The minimum investment in the fund is $1 million.
Expanded Efforts
The move comes as large banks expand tokenization efforts following passage of the GENIUS Act earlier this year, which established a regulatory framework for stablecoins and provided greater clarity for blockchain-based financial products, the Journal stated.
“There is a massive amount of interest from clients around tokenization,” John Donohue, head of global liquidity at JPMorgan Asset Management, told the Journal. He said the bank aims to offer blockchain-based options that mirror the choices available in traditional money market funds.
JPMorgan analysts wrote in July that tokenizing shares of money market funds could help those products remain competitive with stablecoins while creating new use cases.
Other Big Banks Make Moves
As the Journal further reported, those comments followed a separate announcement by Bank of New York Mellon and Goldman Sachs, which said BNY would use Goldman’s blockchain technology to track customer ownership of select money market funds. The firms described that project as a step toward improving the utility and transferability of existing fund shares.
JPMorgan has also tokenized a private-equity fund for wealthy private-bank clients and recently introduced JPM Coin, a deposit token designed for institutional customers.
The developments reflect a broader shift as blockchain technology moves beyond cryptocurrency and into core banking infrastructure, according to recent industry research. Large financial institutions, including JPMorgan, Citi and Visa, are increasingly exploring tokenized deposits, programmable payments and digital-asset settlement as part of modern finance, the report added.
