JPMorgan Chase, a global bank with $4 trillion in assets under management, is launching a tokenized money market fund on Ethereum, the Wall Street Journal first reported on Monday, deepening its push into blockchain-based financial services amid growing demand from institutional clients.
The fund, called My OnChain Net Yield Fund (MONY), received $100 million from the bank’s asset management arm and will be open to external qualified investors this week, the report said.
The global bank joins a wave of high-profile financial giants launching tokenized funds on the blockchain, with money market funds leading the way. Franklin Templeton is one of the first traditional financial firms to launch a BENJI fund in 2021. BlackRock then launched its BUIDL fund in 2024 in partnership with tokenization specialist Securitize, attracting $2 billion in assets to date, according to RWA.xyz data.
These tools allow investors to park their idle cash on the blockchain to earn income — just like money market funds, but with faster settlement times, round-the-clock trading, and real-time visibility into ownership. They are also increasingly used as reserve assets for decentralized finance (DeFi) protocols and as collateral in trading and asset management.
The asset class grew from $3 billion to $9 billion in one year, according to RWA.xyz data. BCG and Ripple said in a report that the broader tokenized asset market is expected to grow to $18.9 trillion by 2033.
“Clients are very interested in tokenization,” John Donohue, global head of liquidity at J.P. Morgan Asset Management, told the Wall Street Journal.
JPMorgan built MONY on the bank’s internal tokenization platform, Kinexys Digital Assets. The product may serve as a test case for expanding the bank’s on-chain product lineup.
“We want to be a leader in this space and work with clients to make sure we have a product lineup that allows them to make the same choices we do in traditional money market funds on blockchain,” Donohue said.
Like a traditional money market fund, 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 open to accredited investors with a minimum investment of $1 million.
Read more: JPMorgan takes tokenization further with Galaxy Bonds on Solana
