JPMorgan Launches First On-Chain Money Market Fund

• The tokenized money market fund is called “My OnChain Net Yield Fund” (MONY) and operates on the Ethereum blockchain
• JPMorgan’s asset management division will initially seed the fund with $100 million of its own capital
• Tokenized money market funds now hold nearly $9 billion in assets, a nearly tenfold increase since 2023

JPMorgan Chase & Co. announced a big expansion of its blockchain and digital asset initiatives with the launch of a tokenized money market fund. Called the “My OnChain Net Yield Fund” (MONY), it operates on the Ethereum blockchain.

JPMorgan’s asset management division, which oversees trillions of dollars in client assets, will initially seed the fund with $100 million of its own capital.

The fund is only open to wealthy, pre-approved investors. To qualify, a person needs to have at least $5 million to invest, while an institution needs $25 million. Also, the required minimum initial investment is $1 million.

Related: JPMorgan Arranges $50M Tokenized Debt on Solana: Galaxy Digital Issues, USDC Settles

The tokenized fund represents digital tokens in exchange for investor subscriptions using cash or stablecoins like USDC. These tokens represent a share in a traditional money market fund but on the blockchain, allowing holders to earn daily interest, access the fund’s liquidity, and yield generating features on-chain.

A major traditional bank embracing blockchain tokenization

The announcement shows that one of the biggest banks in the world believes blockchain technology has serious uses in everyday finance.

In fact, institutional adoption of tokenized funds has grown rapidly in recent years. According to the recent Bank for International Settlements BIS bulletin, tokenized money market funds now hold nearly $9 billion in assets, a nearly tenfold increase since 2023. The report also warned that rapid growth could bring new risks, like liquidity shortages and operational issues.

As for JPMorgan itself, the bank had already rolled out its own digital settlement tools for corporate clients, JPM Coin and the JPMD token. These work on public blockchain networks, enabling institutions to move dollar deposits instantly, any time of day.

Additionally, earlier this year, JPMorgan tokenized a private equity fund on its internal blockchain platform (Kinexys). The goal was to make fund settlements faster, automate paperwork for investors, and bring more clarity to private investment tracking.

The bank has also been active in tokenizing real-world financial instruments, such as commercial paper and short-term debt for partners like Galaxy Digital on the Solana blockchain. This marked one of the first times in the US that such deals were settled completely on a public network using a digital dollar (USDC).

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