JPMorgan Chase, a global bank with $4 trillion in assets under management, is rolling out a tokenized money market fund on Ethereum, deepening blockchain-based finance amid growing demand from institutional clients, The Wall Street Journal first reported Monday.
The fund, called My OnChain Net Yield Fund (MONY), is backed by $100 million from the bank’s asset management division and is expected to open this week to qualified external investors, the report said.
The global bank joins a wave of leading financial giants launching tokenized funds on the blockchain, with money market funds leading the way. Franklin Templeton was among the first traditional financial firms with its BENJI fund in 2021. Then, BlackRock launched 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 park idle cash on blockchains to earn a return – like with a money market fund but with faster settlement times, around-the-clock transactions and real-time visibility into ownership. Increasingly, they are also used as a reserve asset for decentralized finance (DeFi) protocols and as collateral in trading and asset management.
The asset class grew from $3 billion to $9 billion in a year, according to data from RWA.xyz. The broader tokenized assets market is expected to reach $18.9 trillion by 2033, BCG and Ripple said in a report.
“There is a huge amount of client interest in tokenization,” John Donohue, head of global liquidity at JPMorgan Asset Management, told WSJ.
JPMorgan built MONY on Kinexys Digital Assets, the bank’s in-house tokenization platform. The product will likely serve as a test to expand the bank’s range of on-chain offerings.
“We hope to be a leader in this space and work with our customers to ensure that we have a product suite that allows them to have the choices that we have in traditional money market funds on blockchain,” Donohue said.
Like traditional money market funds, MONY is intended to hold short-term debt securities and pay interest daily. Investors can redeem their shares with cash or Circle’s USDC stablecoin. The fund will be available to qualified investors, with a minimum investment of $1 million.
Read more: JPMorgan deepens tokenization with Galaxy debt issuance on Solana
