JPMorgan has filed to launch a tokenized money market fund on Ethereum, designed to let stablecoin issuers hold reserve assets in a regulated, yield-bearing vehicle. The fund, ticker JLTXX, will invest in US Treasury bills and overnight repo agreements backed by Treasurys or cash, according to a Tuesday SEC filing. It aims to comply with the GENIUS Act, a stablecoin law signed in July.
Investors must meet a $1 million minimum. The fund carries a 0.16% annual fee after waivers and will be managed by JPMorgan’s blockchain unit, Kinexys Digital Assets. The bank says the filing becomes effective Wednesday, though it hasn't disclosed a launch date.
Tokenization is drawing increasing interest from Wall Street for its potential to improve trading and settlement efficiency. Over $32.2 billion in real-world assets-excluding stablecoins-are now tokenized onchain, spanning commodities, stocks, bonds, and real estate.
Bloomberg analyst Eric Balchunas called JLTXX a “big deal,” noting its 0.16% fee is low for a stable-value money market fund.
This follows JPMorgan’s first tokenized product, MONY, launched in December, also on Ethereum. Last week, JPMorgan participated in a pilot moving a tokenized US Treasury fund from the US via XRP Ledger to a Singapore bank account in seconds.
Morgan Stanley launched a similar fund in April. However, the IMF has flagged risks, warning that tokenization shifts risk to shared ledgers and smart contracts, complicating intervention during stress. The IMF also said without legal clarity, tokenized markets risk being fragmented.