Why JPMorgan Put a Tokenized Money Market Fund on Ethereum

Key takeaways 

• JPMorgan tokenized a money market fund and launched it on the Ethereum mainnet.

• The fund holds US Treasurys and Treasury-backed repos, with daily dividend reinvestment.

• Public Ethereum places MONY alongside stablecoins, tokenized treasuries and existing onchain liquidity.

• Now the focus shifts to collateral use, secondary transfers and whether other major banks follow.

JPMorgan Asset Management has placed a very traditional product on the Ethereum blockchain: a tokenized money market fund called the My OnChain Net Yield Fund (MONY).

It launched on Dec. 15, 2025, and runs on the bank’s Kinexys Digital Assets platform. Investors access the fund through Morgan Money, with ownership interests issued as blockchain tokens delivered directly to their onchain addresses.

This is significant because money market funds are a common vehicle institutions use to park short-term cash. They are built for liquidity and steady yield and are typically backed by plain-vanilla assets.

MONY fits that profile exactly. It invests in US Treasurys and Treasury-collateralized repos, offers daily dividend reinvestment and allows qualified investors to subscribe and redeem using cash or stablecoins. JPMorgan has also said it is seeding the fund internally before opening it more broadly.

The decision to use Ethereum as the settlement layer makes the launch even more notable.

Did you know? A Treasury-collateralized repo is essentially a short-term, secured loan. One party provides cash, the other posts US Treasurys as collateral, and both agree to reverse the trade later at a slightly higher price. The difference between the two prices represents the interest.

So, what exactly has JPMorgan launched?

MONY is a money market fund delivered onchain. Investors purchase fund interests backed by a conservative cash portfolio of US Treasury securities and repurchase agreements fully collateralized by Treasurys, with ownership represented as a token sent to the investor’s Ethereum address.

The setup runs through two JPMorgan systems:

• Morgan Money is the interface where qualified investors subscribe, redeem and manage positions.

• Kinexys Digital Assets is the tokenization layer that issues and administers the onchain representation of those fund interests.

The idea is that tokenization can improve transparency, support peer-to-peer transfers and open the door to using these positions as collateral in blockchain-based markets.

On the product side, MONY keeps the mechanics familiar, with daily dividend reinvestment and subscriptions and redemptions handled through Morgan Money using cash or stablecoins.

Why “public Ethereum” is so interesting

JPMorgan wants to plug into onchain systems that counterparties already use, including stablecoins for settlement, custody and reporting workflows, analytics, compliance tooling and distribution pipes.

Ethereum also sits where crypto’s cash activity is concentrated. RWA.xyz estimates stablecoins at roughly $299 billion, forming the liquidity base that tokenized funds repeatedly interact with for settlement and cash management.

On the cash-like asset side, tokenized Treasurys total $8.96 billion. A money market-style product fits naturally here because it sits alongside the assets and behaviors investors already use to park funds, move liquidity and post collateral.

Then there is reach. RWA.xyz’s network table shows Ethereum holding about two-thirds of the total tokenized RWA value.

For a regulated product that needs to move between approved counterparties, that concentration matters.

Did you know? “Public Ethereum” refers to the Ethereum mainnet, the open network anyone can use. People often say “Ethereum” to mean the same thing, but adding “public” makes it explicit that this is not a private, permissioned, bank-run Ethereum-style network.

When cash yield goes onchain

MONY’s portfolio remains conservative, holding US Treasurys and Treasury-collateralized repos with daily dividend reinvestment, while ownership is represented as a token at an investor’s blockchain address. Once yield-bearing cash sits onchain, it can begin to integrate into other workflows.

1) 24/7 treasury operations

Positions can sit alongside stablecoin balances and other tokenized assets, with subscriptions and redemptions routed through Morgan Money and the token layer handled by Kinexys Digital Assets. For institutions that already run parts of their cash and settlement flow onchain, this creates a much tighter loop.

2) Collateral mobility

JPMorgan highlights the potential for broader collateral usage, alongside transparency and peer-to-peer transferability. Collateral is where time and cost tend to accumulate through eligibility checks, handoffs, settlement timing and transfer controls. A tokenized money market fund share gives approved parties a simpler way to pass value, settle faster and enforce who can hold it through onchain rules.

3) The cash leg for tokenized markets

Tokenized securities, funds and real-world assets (RWAs) still need a place to park liquidity between trades and settlements. A yield-bearing cash product on Ethereum fits naturally into that role as onchain markets continue to scale.

The competitive landscape

MONY enters a lane that is already crowded with serious players.

BlackRock’s BUIDL launched in 2024 as a tokenized fund on Ethereum, with recent updates leaning into features institutions actually use, including daily dividends, 24/7 peer-to-peer transfers, broader network coverage and moves toward collateral integrations.

Franklin Templeton has been advancing the same idea with its onchain money market fund, where BENJI tokens represent shares in FOBXX.

Then there is the market infrastructure layer. BNY Mellon and Goldman Sachs have been discussing record-tokenization approaches aimed at making existing money market fund shares easier to move through institutional workflows.

The market appears to be in the midst of a buildout phase, with tokenized cash products, improved transfer infrastructure and clearer paths into collateral usage.

McKinsey’s base case estimates tokenized financial assets at around $2 trillion by 2030, excluding crypto and stablecoins.

Meanwhile, Calastone estimates more than $24 billion in tokenized assets under management as of June 2025, with money market and Treasury bond funds making up a meaningful share.

Practicality and impact

MONY brings a regulated cash product onto public Ethereum, with access remaining tightly gated. It is offered as a Rule 506(c) private placement for qualified investors, with distribution running through Morgan Money. Eligibility checks sit at the center of the product, and the investor base remains narrowly defined.

That structure shapes how the token can move. A tokenized fund share can embed transfer rules, compliance gates and operational controls that determine who is allowed to hold it, who can receive it and how redemption works in different scenarios. JPMorgan’s risk disclosures around the product and blockchain usage point to an institutional-grade rollout designed around control and auditability.

The Ethereum mainnet is the launch venue, and usage patterns can shift with economics. Mainnet fees and operational overhead influence how often assets move and can steer decisions on scaling paths over time, including potential activity on layer 2s as volumes grow.

It is worth watching how this evolves as the product’s real-world cadence emerges.

Did you know? Rule 506(c) is a US securities exemption that allows an issuer to publicly market a private offering, provided all buyers are accredited investors and the issuer verifies that status.

What now?

Three signals will show how far this goes.

• First, whether MONY tokens begin to appear as usable collateral within broader onchain workflows, such as repo-style arrangements, secured borrowing, hedging and prime-brokerage-style rails, aligning with JPMorgan’s emphasis on “broader collateral usage.”

• Second, whether other global systemically important banks (GSIBs) follow JPMorgan onto public chains. If peers replicate the settlement-layer choice, it will signal that public infrastructure is becoming a leading venue for tokenized cash products.

• Third, whether stablecoin settlement, including USDC (USDC) in reported coverage, expands beyond subscriptions and redemptions into secondary transfers and deeper integrations. That is the point where distribution begins to resemble market infrastructure rather than a wrapped fund product.

If MONY is accepted as collateral and begins to move through secondary transfers, not just subscriptions and redemptions, it becomes part of the settlement cycle rather than a boxed-up money market fund.

If other GSIBs launch similar cash products on the Ethereum mainnet, that would indicate a potential default venue if the trend continues for tokenized cash.

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