JPMorgan Chase is set to introduce a tokenized money market fund, reflecting a broader trend among financial institutions to integrate blockchain technology into traditional asset management. The announcement follows a similar initiative by BlackRock, underscoring the increasing interest in tokenization within the financial sector.
In a filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday, JPMorgan detailed plans for the JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX). This fund will focus exclusively on short-term U.S. Treasuries, cash, and overnight repurchase agreements backed by government securities.
The fund will utilize blockchain technology to maintain token balances that correspond to investors’ ownership records. Approved users will be able to execute purchase, redemption, and transfer requests via the Ethereum blockchain, as outlined in the filing. Kinexys Digital Assets, the bank’s blockchain division previously known as Onyx, will oversee the underlying blockchain infrastructure.
This initiative is designed to comply with the reserve asset requirements set forth in the GENIUS Act, legislation aimed at regulating stablecoin issuers in the United States. As a result, the fund could serve as a yield-bearing reserve option for stablecoin companies seeking compliant exposure to Treasury assets.
JPMorgan’s announcement comes shortly after BlackRock filed for a tokenized Treasury reserve vehicle and blockchain-based shares of an existing $7 billion money market fund. The rapid development of tokenization—creating blockchain representations of traditional financial assets—has gained traction in recent years, with proponents arguing that it can enhance settlement efficiency, transparency, and facilitate continuous trading and collateral utilization.
According to data from rwa.xyz, the market for tokenized real-world assets has expanded by over 200% in the past year, surpassing $32 billion. Treasury products are among the fastest-growing segments, as institutions seek opportunities to generate yield on cash held in blockchain environments.
JPMorgan has been at the forefront of integrating blockchain technology into traditional finance. In December, the bank launched a tokenized money market fund called MONY on the Ethereum platform, providing institutional investors with blockchain access to short-term cash products. Additionally, through Kinexys, JPMorgan has facilitated tokenized collateral and settlement transactions for its institutional clients.
JPMorgan Chase plans to launch a tokenized money market fund, aligning with recent moves by BlackRock in the blockchain space. This initiative aims to modernize asset management while adhering to regulatory standards for stablecoin issuers.