JPMorgan Launches First Tokenized Money Market Fund on Ethereum
JPMorgan Chase’s asset management division has launched its first tokenized money market fund, marking a significant step in the bank’s expansion into blockchain-based finance and joining a growing group of Wall Street firms exploring tokenization.
The New York-based bank announced on Monday (Dec. 15) the debut of the My OnChain Net Yield Fund (MONY), a private fund built on Ethereum and supported by JPMorgan’s tokenization platform, Kinexys Digital Assets. The fund is open to qualified investors and enables participants to earn yield while holding the fund’s token directly on the blockchain.
Wall Street Accelerates Push Into Tokenization
The launch reflects JPMorgan’s broader push into tokenized financial products, which convert traditional assets—such as bonds, stocks, and loans—into blockchain-based tokens representing fractional ownership.
While financial institutions have tested blockchain applications for years, activity has accelerated following the passage of the Genius Act in the U.S., which established a clearer regulatory framework for stablecoins—another fast-growing segment of digital finance.
Fund Details: High Minimum and JPMorgan Seeding
According to The Wall Street Journal, which first reported the development, MONY carries a minimum investment of $1 million. JPMorgan plans to seed the fund with $100 million of its own capital before opening it to external investors.
John Donohue, Head of Global Liquidity at JPMorgan Asset Management, said tokenization has the potential to significantly enhance transaction efficiency and expand the capabilities of traditional financial products.
Tokenization’s Promise vs. Market Reality
Tokenization is often promoted as a way to make financial markets faster, more cost-efficient, and more transparent, with near-instant settlement and reduced reliance on legacy infrastructure. However, large-scale adoption remains limited.
In an August research note, JPMorgan itself acknowledged that the tokenized real-world asset (RWA) market remains relatively small, driven largely by crypto-native firms rather than traditional financial institutions. Strategists led by Nikolaos Panigirtzoglou described the total tokenized asset base as “rather insignificant,” despite growing interest.
Banks Continue Blockchain Experiments
Still, experimentation across global banking continues to gather pace. HSBC recently announced plans to offer tokenized deposits to corporate clients, while Bank of New York Mellon and Goldman Sachs revealed a collaboration earlier this year to use blockchain technology to track ownership records of money market funds.
JPMorgan’s MONY launch adds to this momentum, signaling that major financial institutions are moving from pilot projects toward real-world blockchain-enabled investment products.
