J.P. Morgan Asset Management on Monday, Dec. 15, launched its first tokenized money market fund (MMF) on Ethereum, marking another step by a major bank to move traditional financial products onto public blockchains.
The fund, called My OnChain Net Yield Fund (MONY), is open to qualified investors. It is issued on Ethereum, the world’s largest smart contract blockchain, which currently has more than $74 billion in total value locked across decentralized finance (DeFi) applications, according to DefiLlama.
MONY is built using J.P. Morgan’s tokenization platform, Kinexys Digital Assets, and is structured as a private placement fund, according to a press release viewed by The Defiant. The fund holds only U.S. Treasury securities and repurchase agreements backed by Treasurys.
With MONY, investors can earn U.S. dollar yield through Morgan Money, J.P. Morgan Asset Management’s platform for liquidity management. Meanwhile, dividends are reinvested daily, the release explained.
The launch highlights how large financial institutions are increasingly using blockchain infrastructure to deliver traditional products, rather than creating entirely new ones. By tokenizing a standard MMF, J.P. Morgan is testing how blockchain rails can be used for settlement, ownership and transfers.
The move follows other recent efforts by the bank to bring traditional financial vehicles on-chain. Earlier this month, J.P. Morgan arranged Galaxy Digital’s first U.S. commercial paper issuance on the Solana blockchain, with Coinbase and Franklin Templeton as buyers. The transaction was issued and settled on-chain using USDC, The Defiant previously reported.
Meanwhile, in November, E-commerce giant Alibaba revealed plans to launch a stablecoin-like global payments system sometime this month using J.P. Morgan’s blockchain technology. This news came shortly after J.P. Morgan officially launched its tokenized deposit asset, JPMD, on Coinbase’s Layer 2 Base.
"Active management and innovation are at the heart of how we deliver new solutions for investors navigating today's financial landscape," said George Gatch, CEO of J.P. Morgan Asset Management. "By harnessing technology alongside our deep expertise in active management, we're able to provide clients with advanced, innovative, and cost-effective capabilities that help them achieve their investment goals."
