JPMorgan Chase & Co. has taken another major step into blockchain-based finance by introducing its first tokenized money market fund on the Ethereum network. The product signals how large banks now move beyond pilots and into real-world blockchain adoption, according to details shared in the provided source .
The new fund, called My OnChain Net Yield Fund, or MONY, comes from JPMorgan’s asset management division, which oversees about $4 trillion in assets. The bank has seeded the fund with $100 million of its own capital, showing confidence before inviting qualified investors to participate.
How the MONY Fund Works
MONY targets high-net-worth individuals and institutions that meet strict asset thresholds. Investors access the fund through JPMorgan’s Morgan Money platform, where digital and traditional finance meet.
Key features include:
- A $1 million minimum investment requirement
- Access for individuals with at least $5 million under management
- Institutional eligibility starting at $25 million
- Subscriptions available using fiat currency or USDC stablecoins
- Blockchain-based tokens that earn interest daily
The structure mirrors traditional money market funds, but the tokens live directly on Ethereum. Therefore, investors benefit from faster settlement and easier transfers without abandoning familiar yield mechanics.
Why Tokenization Matters to Institutions
Tokenization continues to gain momentum because it improves efficiency. Analysts note that blockchain-based funds can settle almost instantly and reduce operational costs. Furthermore, tokenized shares can serve as collateral in on-chain financial systems, which expands their usefulness.
The launch also follows recent regulatory progress, including the GENIUS Act. That legislation clarified stablecoin rules and encouraged banks to explore blockchain products with greater confidence.
Competition and the Road Ahead
JPMorgan does not stand alone in this race. Goldman Sachs, BlackRock, and BNY Mellon have all announced similar tokenization efforts. However, JPMorgan’s early move into a live, interest-bearing fund places it among the leaders.
Beyond MONY, the bank continues to test blockchain settlements, including recent debt deals using USDC. As adoption grows, tokenized money market funds may reshape how institutions manage liquidity, even though education and infrastructure challenges still remain.
