JPMorgan Chase, the $4 trillion banking giant, has stepped into the blockchain arena with the launch of its first tokenized money market fund on the Ethereum network. This landmark move bridges traditional finance and blockchain technology as major financial institutions embrace digital innovation.
The bank seeded the fund, named My OnChain Net Yield Fund (MONY), with $100 million of its own capital on December 15, 2025. JPMorgan will open the fund to qualified investors starting December 16, marking a significant development in the institutional adoption of blockchain technology.
Today @jpmorgan, the world’s largest bank by market cap per @WSJ, announced they’re launching their first ever tokenized money market fund—MONY—on Ethereum.
The firm is seeding the fund with $100M of its own capital before opening to outside investors on Tuesday. https://t.co/xK0Qp3gFP5
— Ethereum (@ethereum) December 15, 2025
How MONY Works: Merging Traditional Finance with Blockchain
The MONY fund operates through JPMorgan’s Kinexys Digital Assets tokenization platform and remains available exclusively via the bank’s Morgan Money portal. Unlike conventional investment vehicles, MONY delivers digital tokens directly to investors’ blockchain addresses, representing their ownership share of the fund.
The fund invests solely in U.S. Treasury securities and repurchase agreements fully collateralized by U.S. Treasuries. This conservative approach ensures security while also leveraging blockchain advantages. MONY pays dividends daily and automatically reinvests them, similar to traditional money market funds.
One key innovation is the fund’s settlement flexibility. Investors can subscribe and redeem using either cash or Circle’s USDC stablecoin. This hybrid approach creates a bridge between traditional finance and digital assets. Additionally, the tokenization enables peer-to-peer transferability and 24/7 trading capabilities not typically available with conventional funds.
The tokenized structure offers potential improvements in transaction speed, transparency, and accessibility. These benefits might explain the growing interest in tokenized treasury products across major financial institutions.
There is a massive amount of interest from clients around tokenization. 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.
John Donohue, head of global liquidity at JPMorgan Asset Management
Exclusive Access and Investment Requirements
MONY targets institutional and wealthy individual investors rather than retail customers. The fund requires a significant $1 million minimum investment and restricts access to qualified investors only. Individual investors must possess at least $5 million in investable assets, while institutions need a minimum of $25 million.
These high thresholds position MONY as a product for sophisticated investors who understand both traditional finance and blockchain technology. The substantial barriers to entry suggest JPMorgan views this launch as a test case for future blockchain-based financial products aimed at its wealthiest clients.
JPMorgan’s asset management division, which oversees approximately $4 trillion, sees this initiative as a stepping stone toward a broader lineup of blockchain-based financial products. The bank appears to be targeting growth in the rapidly expanding tokenized treasury market.
Competing in a Growing Tokenized Asset Market
JPMorgan enters an increasingly competitive tokenized treasury landscape. BlackRock currently leads this sector with its BUIDL fund, which manages approximately $1.8 billion in assets on public blockchains. Franklin Templeton and other major asset managers have launched similar products as institutional demand grows.
The total tokenized treasury market reached approximately $7.3 billion in 2025, representing a 256% increase from the previous year. This growth reflects strong institutional demand for yield-bearing digital assets that combine the safety of U.S. Treasuries with blockchain advantages like instant settlement and always-available trading.
The broader tokenized real-world asset market hit $38 billion in 2025, with money market funds and Treasury products driving much of the expansion. Goldman Sachs and Bank of New York Mellon announced partnerships earlier in 2025 to tokenize fund ownership for institutional clients, while several crypto exchanges launched tokenized stocks and securities.
The Future of Institutional Finance on Blockchain
Regulatory developments have supported the growth of tokenized financial products. The passage of the GENIUS Act earlier in 2025 established a federal framework for dollar-denominated stablecoins, giving traditional financial institutions more confidence to build blockchain-based products.
Recent clarifications around digital asset regulations have encouraged major financial firms to accelerate tokenization initiatives across funds, securities, and other real-world assets. The improving regulatory environment has created favorable conditions for traditional banks to experiment with blockchain technology.
JPMorgan’s blockchain activities extend beyond MONY. Last week, the bank helped arrange a commercial paper offering for a Galaxy Digital subsidiary on the Solana blockchain. The institution also partnered with Alibaba to launch a tokenized payment system using blockchain technology for cross-border transactions.
As competition intensifies between major financial institutions, Ethereum has emerged as a settlement layer where traditional finance converges with blockchain markets. The success of products like MONY will help determine whether tokenization becomes a core component of the global financial system or remains a niche innovation within the broader market.
With institutional demand growing and regulatory frameworks maturing, the tokenized asset market appears positioned for continued expansion. JPMorgan’s entry as the largest global systemically important bank to launch on a public blockchain adds significant validation to the sector.
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