JPMorgan Asset Management announced on the 15th that it has launched its first-ever tokenized money market fund (MMF), marking a major step in bringing regulated financial products onto public blockchains.
? LATEST: JPMorgan Launches $100M Tokenized Money-Market Fund on Ethereum
JPMorgan Chase is rolling out its first tokenized money-market fund on Ethereum, seeding the private vehicle with $100M of its own capital, per WSJ. The fund called MONY is supported by JPMorgan's Kinexys… pic.twitter.com/wX8VPkex6s
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The new fund, called My OnChain Net Yield Fund (MONY), is issued and accessible on the Ethereum (ETH) public blockchain.
MONY is a private fund for qualified investors, offering USD-denominated yields through JPMorgan’s digital investment platform, Morgan Money.
Token issuance is powered by Kinexys Digital Assets, JPMorgan’s asset tokenization infrastructure. Fund shares are recorded directly on a public blockchain as regulated securities, rather than as deposits or electronic money.
How the Ethereum-Based MONY Fund Works
From a legal standpoint, MONY tokens are classified as securities, not bank deposits or e-money. Even though they circulate on a public blockchain, they remain fully subject to existing securities laws.
Qualified investors can subscribe to and redeem MONY tokens using cash or USD-backed stablecoins such as USDC, enabling near real-time settlement.
From an investment perspective, the fund primarily allocates capital to U.S. Treasury repos, U.S. Treasuries, and U.S. government agency securities, while maintaining a small cash balance. This structure mirrors that of traditional money market funds, while incorporating the operational efficiencies of blockchain technology.
The design of MONY reflects JPMorgan’s broader strategy of positioning asset tokenization at the core of modern asset management. Investors can monitor fund activity on-chain, and future use cases may include integration with decentralized finance (DeFi) protocols.
To meet regulatory and anti–money laundering requirements, token transfers are restricted to approved wallets, ensuring compliance while operating on a public network.
Institutional Demand Drives Tokenized Finance Growth
The launch comes amid accelerating adoption of Ethereum across corporate finance, ETFs, and institutional investment products.
Regulatory clarity is also improving. Frameworks such as U.S. securities regulations and the European Union’s Markets in Crypto-Assets Regulation (MiCA) are creating a more predictable compliance environment, making it easier for institutional investors to enter digital asset markets.
The Bank for International Settlements (BIS) has reported that tokenized money market funds are rapidly emerging as collateral assets within the crypto ecosystem, combining market-rate yields with regulatory protections typically associated with securities.
Industry analysts project that institutional allocations to digital assets could rise from roughly 7% to 16% over the next three years, with Ethereum increasingly positioned alongside Bitcoin (BTC) as a core asset.
Major financial institutions, including JPMorgan, see tokenized MMFs as a way to remain on-chain while offering returns close to the risk-free rate, making them attractive not only to asset managers but also to crypto exchanges and DeFi protocols seeking compliant, yield-bearing collateral.
