JPMorgan (JPM) is preparing to launch a tokenized money market fund, the latest sign that major financial institutions and Wall Street asset managers are accelerating efforts to move traditional assets onto the blockchain rails.
A filing Tuesday with the U.S. Securities and Exchange Commission (SEC) outlines plans for a blockchain-based money market fund, investing exclusively in short-term U.S. Treasury bills, cash and overnight repurchase agreements backed by government securities.
The fund, called JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX), will maintain blockchain-based token balances linked to investors’ ownership records, allowing approved users to submit purchase, redemption and transfer requests through Ethereum, the filing said. The underlying blockchain infrastructure will be operated by Kinexys Digital Assets, the blockchain unit of JPMorgan, formerly known as Onyx.
The fund is structured to satisfy the reserve asset requirements under the GENIUS Act, legislation aimed at regulating stablecoin issuers in the United States. This could position the product as a yield-bearing reserve vehicle for stablecoin businesses seeking Treasury-compliant exposure.
The move comes just days after BlackRock (BLK), the world’s largest asset manager, filed paperwork for a new tokenized Treasury Reserve Vehicle and blockchain-based shares of an existing $7 billion money market fund.
Tokenization – the process of creating blockchain-based representations of traditional financial assets – has become one of the hottest trends in financial and crypto markets. Proponents argue that technology can reduce settlement times, improve transparency, and enable around-the-clock use of transactions and collateral.
The market for real-world tokenized assets has grown more than 200% over the past year and now exceeds $32 billion, according to data from rwa.xyz. Treasury products have become one of the fastest growing segments as institutions look for ways to earn yield on on-chain liquidity.
JPMorgan is among the most active traditional banks integrating blockchain infrastructure into traditional finance. In December, the bank launched a tokenized money market fund called MONY on Ethereum, providing institutional investors with blockchain-based access to short-term cash products. Using Kinexys, the bank also processed tokenized collateral and settlement transactions for institutional clients.
