JPMorgan introduces its token-based money market fund on Ethereum as Wall Street bets on blockchain

JPMorgan Chase introduces its first structured money market fund based on tokens on the Ethereum network, a strategic move reflecting the growing institutional demand for digital asset solutions. Named My OnChain Net Yield Fund (MONY), this new instrument marks a milestone in the financial transformation of one of the world’s largest banks, with $4 trillion under management.

With an initial capitalization of $100 million from its asset management division, the fund was recently launched to qualified investors. Access requires a minimum investment of $1 million, and participants can redeem their shares using traditional cash or Circle’s USDC stablecoin.

Tokenization: The new strategy of the money market fund

MONY was built on Kinexys Digital Assets, the bank’s internal tokenization platform. Like traditional money market funds, it is designed to hold short-term debt instruments with daily interest payments. However, the tokenized version offers distinct advantages: immediate settlement, continuous trading (24/7), and real-time transparency of ownership.

John Donohue, Head of Global Liquidity at JPMorgan Asset Management, told The Wall Street Journal that there is massive client interest around tokenization. The bank projects that MONY will serve as a test case to expand its onchain product range, allowing investors to access options similar to traditional money markets but on the blockchain.

The boom of digital assets: JPMorgan joins an expanding trend

JPMorgan is not a pioneer in this space. Franklin Templeton launched its BENJI fund in 2021, setting a precedent for tokenized products in the traditional financial sector. Subsequently, BlackRock entered the market with its BUIDL fund in 2024, in partnership with Securitize, accumulating $2 billion in assets to date.

The asset class of the tokenized money market fund has experienced rapid growth. In just one year, assets in this segment grew from $3 billion to $9 billion. These products are used both as a repository for idle cash on blockchains, as collateral in decentralized finance (DeFi) protocols, and for commercial transactions.

Market projections: A future of $18.9 trillion in tokenized assets

The outlook is even more ambitious. According to a joint report by Boston Consulting Group (BCG) and Ripple, the broader market of tokenized assets could reach $18.9 trillion by 2033. This projection reflects the confidence of analysts and asset managers that tokens will represent a significant portion of the global financial economy.

JPMorgan’s move demonstrates that Wall Street has shifted from speculation to institutional implementation of blockchain. With multiple players from the traditional financial market entering simultaneously, the tokenized money market fund positions itself as the first mass adoption product at the intersection of traditional finance and digital assets.