- JPMorgan Chase & Co. has launched its first tokenized money market fund on Ethereum.
- The financial giant invests $100 million for the launch of MONY.
- This move highlights the growing trend of financial giants embracing blockchain.
Financial behemoth JPMorgan Chase & Co. is preparing to unveil its first tokenized money market fund on the Ethereum blockchain. With a staggering $100 million investment from the banking giant, this bold move underscores JPMorgan’s foray into the crypto space.
Interestingly, this initiative highlights the growing institutional adoption of blockchain technology and digital assets. It also sheds light on a significant shift towards the tokenization of traditional financial assets.
As JPMorgan’s connection with the crypto space is once again strengthened by its entry into tokenization, this development is expected to unlock new efficiencies, transparency, and accessibility for investors.
Blockchain Meets TradFi: How JPMorgan’s Tokenized Fund is Changing the Game
In the latest development within the TradFi-DeFi space, JPMorgan, a Wall Street giant, is exploring the use of blockchain technology for money market funds. According to today’s Wall Street Journal report, JPMorgan has announced the inaugural launch of its tokenized money market fund, “My Onchain Net Yield Fund” (MONY), on the Ethereum blockchain.
Notably, the fund will be seeded with $100 million of JPMorgan’s own capital and will be open to qualified investors. These eligible investors include individuals with at least $5 million in investments and institutions with a minimum of $25 million, with $1 million minimum investment requirement.
Supported by JPMorgan’s proprietary tokenization platform, Kinexys Digital Assets, MONY aims to leverage blockchain technology to enhance liquidity, reduce settlement times, and increase transparency. John Donohue, head of global liquidity at J.P. Morgan Asset Management, “
“There is a massive amount of interest from clients around tokenization. And we expect to be a leader in this space and work with clients to make sure that we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain.”
This move comes on the heels of JPMorgan’s recent inclusion of Bitcoin and Ethereum as collateral for loans. These developments highlight the Wall Street giant’s increasing recognition of cryptocurrencies and blockchain technology, marking a significant diversion from its previous pessimistic approach.
GENIUS Act Unleashes a Tokenization Wave on Wall Street
Notably, many Wall Street giants have explored blockchain opportunities, embracing tokenization. This diverging trend has been primarily the result of the US GENIUS Act. By establishing a clear regulatory framework for tokenized dollars, or stablecoins, the landmark measure has sparked a flurry of activity in the tokenization market.
Tokenizing real-world assets (RWAs) is bridging the gap between traditional finance and crypto, with major players like Franklin Templeton, Ondo Finance, Maple Finance, and BlackRock leading the charge. These blockchain-based representations of short-term US Treasury bills offer steady yields of 4.5-5.3z5, providing a stable and compliant investment option for crypto investors.
With over $770 million in tokenized treasuries, this trend marks a significant milestone and the beginning of a new DeFi era where innovation meets regulation. Robinhood CEO Vlad Tenev stated,
“Tokenization is like a freight train. It can’t be stopped, and eventually it’s going to eat the entire financial system.”
For instance, investment manager BlackRock launched its tokenized fund on a public blockchain in March 2024, called the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This fund allows qualified investors to earn US dollar yields by investing through Securtize Markets, LLC. BlackRock’s Head of Digital Assets, Robert Mitchnick, addressed the development as the “latest progression” of the company’s digital assets strategy.
