The new Ethereum-based fund supported by JPMorgan allows qualified investors to earn US dollar dividends and subscribe or redeem using cash or stablecoins.
JPMorgan, one of the world’s biggest banks, is strengthening its footprint in tokenized finance by launching its first money market fund through its $4 trillion asset management unit.
The fund, My OnChain Net Yield Fund, will trade under the ticker MONY and is available on the public Ethereum blockchain, JPMorgan stated in an announcement shared with Cointelegraph on Monday.
Launched via Kinexys Digital Assets, JPMorgan’s own tokenization technology, MONY is a 506(c) private placement fund allowing qualified investors the ability to earn US dollar yields by subscribing through its institutional trading platform, Morgan Money.
With Morgan Money, tokenization can fundamentally change the speed and efficiency of transactions, adding new capabilities to traditional products.
Source: JPMorgan
Blockchain transparency and investor access
By establishing MONY, JPMorgan has become the largest global systemically significant bank to introduce a tokenized money market fund (MMF) on a public blockchain, the bank claimed in the statement.
It added that tokenising the fund makes it more transparent and allows for peer-to-peer transfers, which opens up the possibility of using more collateral in the blockchain ecosystem.
This is a major leap forward in how assets will be traded in the future, Donohue added, underlining the importance of Morgan Money, where eligible investors can access the fund and get tokens at their blockchain addresses.
Morgan Money started in 2019 and offers a real-time investment dashboard and a single access point for operations. This helps investors come up with better liquidity strategies.
Cash and stablecoin subscriptions and redemptions
MONY will only put money into regular US Treasury securities and repurchase agreements that are completely backed by US Treasury securities, so qualified investors can earn returns while keeping the token on the blockchain.
It also offers daily dividend reinvestment, enabling investors to subscribe and redeem using cash or stablecoins using the Morgan Money platform.
JPMorgan’s MONY launch signals another milestone in the battle among established financial institutions to offer regulated tokenized products. The disclosure came weeks after the company made its first transaction using Kinexys Fund Flow, its next fund tokenisation platform, which is set to launch in 2026.
On Thursday, JPMorgan also announced the sale of a US commercial paper for Galaxy Digital Holdings on the Solana blockchain, marking one of the earliest debt issuances ever conducted on a public blockchain.