JPMorgan Chase, a global bank with $4 trillion in assets under management, is launching a tokenized money market fund on Ethereum, delving into blockchain-based finance amid growing demand from institutional clients, the Wall Street Journal first reported on Monday.
The fund, called My OnChain Net Yield Fund (MONY), has $100 million from the bank’s asset management division and will open to qualified outside investors this week, according to the report.
The global bank joins a wave of high-profile financial giants launching tokenized funds on blockchain, with money market funds leading the way. Franklin Templeton was one of the first traditional financial firms with its BENJI fund in 2021. BlackRock then started its BUIDL fund in 2024 with tokenization specialist Securitize, attracting $2 billion in assets to date, according to data from RWA.xyz.
These vehicles allow investors to deposit idle cash into blockchains to earn a return, like with a money market fund but with faster settlement times, 24-hour trading, and real-time ownership visibility. They are also increasingly used as a reserve asset for decentralized finance (DeFi) protocols and as collateral in trading and asset management.
The asset class has grown from $3 billion to $9 billion in a year, data from RWA.xyz shows. The broader market for tokenized assets is projected to grow to $18.9 trillion by 2033, BCG and Ripple said in a report.
“There is enormous client interest around tokenization,” John Donohue, head of global liquidity at JPMorgan Asset Management, told WSJ.
JPMorgan created MONY on Kinexys Digital Assets, the bank’s internal tokenization platform. The product is likely to serve as a test case to expand the bank’s range of on-chain offerings.
“We look forward to being a leader in this space and working with clients to make sure we have a product line that allows them to have the options that we have in traditional money market funds on blockchain,” Donohue said.
Like traditional money market funds, MONY will hold short-term debt instruments and pay interest daily. Investors can redeem shares using cash or Circle’s USDC stablecoin. The fund will be accessible to qualified investors, with a minimum investment of $1 million.
Read more: JPMorgan deepens tokenization with Galaxy debt issuance on Solana
