JPMorgan Chase, a global bank with $4 trillion in assets under management, is pushing deeper into blockchain-based finance with the rollout of a tokenized money-market fund on Ethereum, amid increasing demand from institutional customers.
The move marks JPMorgan’s first tokenized money market fund, making it the largest Global Systemically Important Bank (GSIB) to launch such a fund on a public blockchain.
JPMorgan Taps Etherem For MONY Fund
JPMorgan’s new fund, called My OnChain Net Yield Fund, will trade under the ticker symbol MONY and is seeded with $100 million from the bank’s asset management division before opening to outside investors on Tuesday, the Wall Street Journal reported.
The vehicle is being launched via JPMorgan’s proprietary tokenization platform, Kinexys Digital Assets. It will be open to qualified investors — described as individuals with at least $5 million in investments and institutions with $25 million or more.
These qualified investors can earn US dollar yields by subscribing through the bank’s institutional trading platform, Morgan Money.
“With Morgan Money, tokenization can fundamentally change the speed and efficiency of transactions, adding new capabilities to traditional products,” said John Donohue, head of global liquidity at JPMorgan Asset Management.
Like traditional money-market funds, MONY holds baskets of short-term debt instruments, with interest paid and dividends accrued daily. Investors can subscribe and redeem shares using either cash or Circle’s USDC stablecoin, the report noted.
Growing Interest In Tokenization
The move is the latest example of J.P. Morgan’s push into blockchain and tokenized assets. The bank has been an early mover, creating JPM Coin in 2019 and establishing its blockchain unit, Onyx, in 2020. Last week, JPMorgan announced a landmark commercial paper issuance on the Solana blockchain.
According to JPMorgan’s Donohue, there’s “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,” he added.
The tokenization trend has also garnered support from U.S. regulators. Securities and Exchange Commission (SEC) boss Paul Atkins has recently praised tokenization as a key innovation for capital markets, positing during an appearance on FOX Business last week that it has the potential to transform the financial system over the next few years.
Source: https://zycrypto.com/4-trillion-megabank-jpmorgan-debuts-its-first-tokenized-money-market-fund-on-ethereum/
