American banking giant JPMorgan has unveiled its first tokenized money market fund as part of the institution’s growing push into the blockchain space.
The fund being launched by JPMorgan Asset Management, which oversees about $4 trillion in assets, will operate on the Ethereum (ETH) blockchain, The Wall Street Journal reported on December 15
Notably, the fund will be seeded with $100 million of JPMorgan’s own capital before opening to external investors, with external investors able to access the fund on December 16.
The product, known as the My OnChain Net Yield Fund, is a private fund built on the bank’s Kinexys Digital Assets tokenization platform. It is open to qualified investors, including individuals with at least $5 million in investable assets and institutions with at least $25 million. The minimum investment is $1 million.
Opportunities from the Genius Act
The launch comes as Wall Street accelerates its move into tokenization following the passage of the Genius Act earlier this year.
The legislation established a regulatory framework for stablecoins and has encouraged financial firms to explore blockchain-based versions of traditional assets, including funds, equities, bonds, and real-world assets.
Investors can access the tokenized money market fund through JPMorgan’s Morgan Money platform. Participation results in the issuance of digital tokens held in investors’ crypto wallets, representing their interest in the fund.
Notably, the fund operates in line with conventional money market structures, investing in short-term, low-risk debt instruments that typically offer higher yields than standard bank deposits. Interest accrues daily, and dividends are calculated on an ongoing basis.
Subscriptions and redemptions can be made using either cash or USDC, the U.S. dollar-backed stablecoin issued by Circle.
With this launch, JPMorgan becomes one of the most prominent global banks to bring a core cash-management product fully on-chain, underscoring growing institutional demand for blockchain-based financial infrastructure.
Featured image via Shutterstock
Source: https://finbold.com/jpmorgan-launches-first-ever-tokenized-money-market-fund/
