JPMorgan ( JPM ) is preparing to launch a tokenized money market fund, the latest sign that major financial institutions and Wall Street asset managers are accelerating efforts to move traditional assets onto blockchain rails.
A Tuesday filing with the US Securities and Exchange Commission (SEC) outlined plans for a blockchain-based money market fund that invests exclusively in short-term US Treasuries, cash and overnight repos backed by government securities.
The fund, called the JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX), will maintain blockchain-based token balances linked to investors’ ownership records, allowing authorized users to submit purchase, redemption and transfer requests through Ethereum, the filing said. The underlying blockchain infrastructure will be powered by Kinexy’s Digital Assets, JPMorgan’s blockchain unit formerly known as Onyx.
The fund is structured to meet reserve asset requirements under the GENIUS Act, legislation aimed at regulating stablecoin issuers in the United States, which could position the product as a yield-bearing reserve vehicle for stablecoin firms seeking financial exposure in accordance with the requirements.
The move comes just days after BlackRock (BLK), the world’s largest asset manager, filed paperwork for a new tokenized financial reserve vehicle and blockchain-based shares in an existing $7 billion money market fund.
Tokenization – the process of creating blockchain-based representations of traditional financial assets – has become one of the hottest trends across financial and crypto markets. Proponents claim the technology can reduce settlement times, improve transparency and enable 24/7 trading and use of collateral.
The real-world tokenized asset market has grown more than 200% over the past year and now exceeds $32 billion, according to rwa.xyz data. Treasury products have emerged as one of the fastest growing segments as institutions seek ways to earn returns on onchain cash.
JPMorgan has been among the most active traditional banks integrating blockchain infrastructure into traditional finance. In December, the bank launched a tokenized money market fund called MONY on Ethereum that gives institutional investors blockchain-based access to short-term cash products. Through Kinexys, the bank has also processed tokenized collateral and settlement transactions for institutional clients.
