JPMorgan Plans Tokenized Money Market Fund for Stablecoin Issuers

JPMorgan Chase’s filing was released nearly three weeks after rival investment bank Morgan Stanley introduced its own money market fund, named the Stablecoin Reserves Portfolio.

JPMorgan Chase has submitted a filing to introduce a tokenized money market fund on Ethereum, enabling stablecoin issuers to park reserves backing their tokens in a regulated, cash-equivalent instrument while still generating interest income.

The “OnChain Liquidity-Token Money Market Fund,” under ticker JLTXX, is set to invest in US Treasury bills and overnight repurchase agreements backed by US Treasurys or cash, according to a Tuesday filing with the US Securities and Exchange Commission. JPMorgan Chase designed JLTXX to align with the GENIUS Act, a stablecoin-focused law enacted in July.

Investors will face a minimum investment requirement of $1 million, while the fund carries an annual fee of 0.16% after waivers. The product will be overseen by Kinexys Digital Assets, the blockchain unit of JPMorgan Chase. The investment bank said the filing is scheduled to become effective on Wednesday but did not reveal an official launch date for the fund.

Blockchain-based tokenization has gained increasing attention from Wall Street executives in recent months, as many industry leaders view the technology as a more efficient alternative for trading and settlement compared with traditional financial systems.

According to data from RWA.xyz, more than $32.2 billion in real-world assets, excluding stablecoins, has been tokenized onchain. Nearly all major asset categories — including commodities, stocks, bonds, and real estate — have already been brought onto blockchain networks.

Eric Balchunas of Bloomberg said JPMorgan Chase’s JLTXX fund is also a “big deal” because its 0.16% fee remains relatively low for a money market fund designed to maintain a stable asset value.

JPMorgan Expands Blockchain Use Cases Across Financial Services

The launch of JLTXX comes after JPMorgan Chase introduced its first tokenized investment product, My OnChain Net Yield Fund (MONY), in December, which also operates on Ethereum. MONY invests in short-term debt securities aimed at generating returns above traditional bank deposit rates, with interest and dividends accumulated on a daily basis.

The filing for JLTXX also follows a pilot transaction involving JPMorgan Chase last week, during which the first tokenized US Treasury fund was transferred from the US through the XRP Ledger and interbank payment rails to one of the bank’s Singapore accounts within seconds.

In April, Morgan Stanley introduced the Stablecoin Reserves Portfolio, allowing stablecoin issuers to place reserves backing their fiat-linked tokens into one of the bank’s money market funds while continuing to earn interest.

However, International Monetary Fund raised several concerns about tokenization in an April report, arguing that the technology transfers risk from the traditional banking system to shared ledgers and smart contract infrastructure, potentially making intervention during “stress events” more challenging.

International Monetary Fund also stated that without stronger legal clarity surrounding ownership records and settlement finality, tokenized markets could remain “fragmented and peripheral.”

Several industry figures, including “Shark Tank” investor Kevin O’Leary, have argued that crypto market structure legislation such as the CLARITY Act is necessary to address and resolve these ongoing issues.