JPMorgan Launches Tokenized Money Market Fund on Ethereum Amid Growing Wall Street On-Chain Adoption
JPMorgan Chase has launched MONY, a tokenized money-market fund on the Ethereum blockchain, officially named the My OnChain Net Yield Fund. The fund has been seeded with $100 million from JPMorgan Asset Management, with external qualified investors expected to gain access this week. Shares of MONY can be redeemed in cash or Circle's USDC, with a minimum investment of $1 million. The fund primarily holds short-term debt instruments and offers a daily yield to investors.
MONY is built on Kinexys Digital Assets, JPMorgan's proprietary tokenization platform, serving as a test case for expanding the bank’s on-chain financial product offerings. This launch aligns with a broader Wall Street trend towards tokenized funds, following others like Franklin Templeton's BENJI in 2021 and BlackRock's BUIDL in 2024. Reports indicate BlackRock holds approximately $2 billion in tokenized assets, according to data from RWA.xyz.
Tokenized funds provide investors with the ability to park idle cash on blockchain networks, benefiting from faster settlement times, round-the-clock trading, and real-time transparency of ownership. They are increasingly used by decentralized finance (DeFi) protocols as reserve assets and collateral. The market for tokenized assets has grown rapidly, reaching around $9 billion in assets within a year, and is projected to expand to $18.9 trillion by 2033, according to Boston Consulting Group and Ripple.
JPMorgan aims to establish itself as a leader in on-chain liquidity products. John Donohue, head of global liquidity at JPMorgan Asset Management, highlighted strong client demand for tokenization solutions, underscoring the bank's commitment to innovation in blockchain-based asset offerings.
