JPMorgan Chase is preparing to launch a new tokenized money market fund, the latest sign that Wall Street is accelerating the move of traditional assets onto blockchain rails.
The fund, called the JPMorgan OnChain Liquidity-Token Money Market Fund, will invest exclusively in short-term U.S. Treasuries, cash, and overnight repo agreements. According to a Tuesday filing with the Securities and Exchange Commission, the fund will maintain blockchain-based token balances on Ethereum, allowing approved users to submit purchase, redemption, and transfer requests.
The underlying blockchain infrastructure will be operated by Kinexys Digital Assets, JPMorgan's blockchain unit formerly known as Onyx.
The fund is structured to satisfy reserve asset requirements under the GENIUS Act, legislation aimed at regulating stablecoin issuers. That could position the product as a yield-bearing reserve vehicle for stablecoin firms seeking compliant Treasury exposure.
This filing comes just days after BlackRock, the world's largest asset manager, filed paperwork for a new tokenized Treasury reserve vehicle.
Tokenization has become one of the hottest trends in finance, with supporters arguing the technology can reduce settlement times, improve transparency, and enable around-the-clock trading. The tokenized real-world asset market has grown more than 200% over the past year and now exceeds $32 billion.
JPMorgan has been among the most active traditional banks embedding blockchain infrastructure in finance. In December, the bank launched a similar tokenized money-market fund called MONY on Ethereum.