Breaking: Institutional Tokenization on Ethereum Expands as JPMorgan Launches Onchain Fund

JPMorgan is expanding its blockchain strategy with a tokenized money-market fund built on on Ethereum network. The launch places a core cash-management product on-chain and reflects rising institutional demand for digital versions of traditional financial instruments.

JPMorgan Seeds MONY With $100M

According to WSJ report, the fund is called My OnChain Net Yield Fund, or MONY. It is being released by JPMorgan’s asset-management unit, which manages roughly $4 trillion in assets. The bank put up $100 million of the fund’s capital to get it going before opening it up to outside investors.

MONY works through JPMorgan’s Kinexys Digital Assets platform. The platform provides tokenization and on-chain settlement for institutional products. The fund restricts access to a limited pool of qualified investors. For peoples, the minimum threshold is $5 million of investments and for institutions, it’s $25 million.

A minimum investment of $1 million is in place. The Morgan Money portal processes subscriptions. Investors receive digital tokens that represent ownership. A crypto wallet holds the tokens instead of a traditional account statement.

The JPMorgan Ethereum Fund counterpart structurally mimics traditional money market solutions. It holds short-term debt securities. The fund is aiming at yields that are usually higher than the returns offered on ordinary bank deposits. Interest is compounded daily and dividends are compounded on a continuous basis.

Investors can subscribe to or redeem shares in cash, or in Circle’s USDC stablecoin. This structure enables on-chain settlement without changing the fund’s investment fundamentals. 

Institutional Demand Supports Tokenized Funds

JPMorgan executives cite strong client interest in tokenized finance. Clients are seeking blockchain-based alternatives, according to John Donohue, Head of Liquidity at JPMorgan Asset Management. In traditional money-market funds, investors have choice and an array of choices, said Finegold.

The launch has drawn attention from market analysts. In an X post, Fundstrat Capital CIO Thomas Lee stated: “This is bullish for  $ETH.”

JPMorgan’s move comes amid related changes in the world of asset management. BlackRock’s BUIDL fund, a tokenized money market product, has ballooned since early 2024. The firm now oversees about $1.82 billion in assets, according to RWA. xyz.

The GENIUS Act created a federal regime for dollar based  stablecoins. Development with regards to the Clarity Act has also delineated responsibilities concerning control of digital tokens.