JPMorgan Chase, one of the largest banks globally with approximately $4 trillion in assets under management, is making a significant stride into the realm of blockchain finance. The bank has launched its inaugural tokenized money market fund on the Ethereum blockchain, responding to a growing demand from institutional clients.
This new financial product, named My OnChain Net Yield Fund, is designated with the ticker symbol MONY. Initially seeded with $100 million from JPMorgan”s asset management division, MONY will be accessible to external investors starting Tuesday, as reported by the Wall Street Journal.
MONY is introduced through JPMorgan”s proprietary tokenization platform, Kinexys Digital Assets. It is available exclusively to qualified investors, which include individuals possessing at least $5 million in investments or institutions with $25 million or more. Investors can earn returns in US dollars by subscribing through the bank”s institutional trading platform, Morgan Money.
John Donohue, head of global liquidity at JPMorgan Asset Management, stated, “With Morgan Money, tokenization can fundamentally change the speed and efficiency of transactions, adding new capabilities to traditional products.”
In line with traditional money market funds, MONY comprises collections of short-term debt instruments, offering daily interest payments and dividend accruals. Investors have the option to subscribe and redeem shares using either cash or Circle”s USDC stablecoin.
This development is a continuation of JPMorgan”s commitment to blockchain technology and tokenized assets. The bank has been proactive in this space, having launched JPM Coin in 2019 and establishing its blockchain unit, Onyx, in 2020. Just last week, JPMorgan also made headlines with a groundbreaking commercial paper issuance on the Solana blockchain.
Donohue emphasized the burgeoning interest among clients for tokenization, indicating that the bank plans to be a leader in this sector. “We expect to be a leader in this space and work with clients to ensure that we have a product lineup that provides the same options available in traditional money market funds but on the blockchain,” he remarked.
The trend toward tokenization is gaining traction, with support from regulatory bodies in the U.S. Recently, SEC Chairman Paul Atkins commended tokenization as a crucial innovation for capital markets. He suggested during a recent appearance on FOX Business that it holds the potential to revolutionize the financial system in the coming years.
