JPMorgan is expanding its blockchain offensive with a tokenized money market fund on Ethereum

• The fund is endowed with $100 million and requires a minimum investment of $1 million.
• Tokenized money market funds offer faster settlement, continuous trading, and onchain visibility.
• The tokenized money market sector has grown to $9 billion in assets over the past year.

JPMorgan Chase is preparing, according to a statement released on Monday Wall Street Journal reportis preparing to deepen its foray into blockchain-based finance through a tokenized money market fund on Ethereum.

The bank has not yet officially announced the product, but the report suggests that JPMorgan is moving closer to offering onchain versions of traditional cash management tools as institutional interest in tokenization grows.

The reported initiative comes as major investors look for ways to deploy idle cash more efficiently while ensuring regulatory compliance.

With approximately $4 trillion in assets under management, JPMorgan’s reported plans show how tokenization is evolving from experimental pilots to investment products tied to major global balance sheets.

The proposed fund would enter a rapidly growing segment of digital finance where money market products are increasingly viewed as a bridge between traditional markets and blockchain infrastructure.

Introduction of tokenized money market funds

The fund, known as My OnChain Net Yield Fund, or MONY, was seeded with $100 million from JPMorgan’s asset management division, according to the Wall Street Journal.

The product is expected to open to external, qualified investors this week, although the bank has not yet made any official confirmation.

The minimum investment is $1 million, so the fund focuses on institutional participation rather than retail investors.

MONY is designed to operate in line with traditional money market funds, holding short-term debt instruments and paying interest on a daily basis.

Investors could redeem their shares either in cash or through Circle’s USDC stablecoin, reflecting the increasing use of regulated stablecoins in institutional settlement and liquidity management.

Why Ethereum and tokenization are important

JPMorgan built the reported fund on Kinexys Digital Assets, its internal tokenization platform, with Ethereum chosen as the underlying blockchain, according to the Wall Street Journal.

Tokenized funds record ownership onchain, allowing for faster settlement, real-time transparency, and continuous trading beyond regular market hours.

These features are attracting the attention of asset managers, trading firms and treasury desks seeking operational efficiency while maintaining low-risk instruments.

Tokenized money market funds are increasingly being used in decentralized finance ecosystems as reserve assets and as collateral for trading and asset management.

Competition among financial giants

JPMorgan’s reported plans place it alongside other major financial institutions that have already launched tokenized money market products.

Franklin Templeton launched its BENJI fund in 2021, becoming one of the first traditional asset managers to adopt a blockchain-based fund infrastructure.

BlackRock followed in 2024 with its BUIDL fund, developed together with tokenization specialist Securitize and according to Data from RWA.xyz has since attracted about $2 billion in assets.