JPMorgan Chase is strengthening its presence in on-chain finance. The bank has launched a tokenized money market fund based on Ethereum and funded its start with $100 million of its own capital.
The new product is called MONY. It is being developed by the asset management division, which manages around $4 trillion in assets. Information about the launch first appeared in The Wall Street Journal.
How MONY works
MONY is created as a closed investment product for a limited group of participants. Access is open to private investors with capital from $5 million and institutional clients with assets of at least $25 million. The minimum investment amount is $1 million.
The fund is built on the internal tokenization platform Kinexys Digital Assets, developed by JPMorgan. Investors’ shares are issued as digital tokens and are held in crypto wallets. All operations—from subscription to management—are conducted through the Morgan Money system.
In its economics, the fund mirrors classic money market funds. Assets are placed in short-term debt instruments, and returns usually exceed bank account rates. Interest income is accrued daily, and dividends accumulate continuously.
Special attention is given to settlements. You can enter and exit the fund both through traditional currencies and using the USDC stablecoin from Circle.
Investor demand exceeded expectations
RWA asset capitalization
JPMorgan notes that interest in tokenized products has been significantly higher than forecasts. According to John Donohue, head of liquidity at JPMorgan Asset Management, clients are increasingly requesting solutions specifically in the tokenization format.
This is an important signal for the bank. JPMorgan intends to form a full-fledged line of on-chain products comparable in functionality to traditional money market funds. For institutions, this is a way to keep capital on the blockchain and at the same time receive stable income without leaving funds idle.
Regulatory shifts accelerated the launch
The appearance of MONY coincided with changes in digital asset regulation in the US. The previously adopted GENIUS Act set federal rules for dollar stablecoins. At the same time, the discussion of the Clarity Act gave the market a clearer understanding of how regulatory powers are distributed in the blockchain finance sector.
Together, this reduced legal risks for banks and asset managers. The result is an accelerated transfer of funds, securities, and other real assets to the on-chain environment.
According to The Block, the total capitalization of tokenized real-world assets in 2025 reached a record $38 billion. The greatest demand was for money market funds, as they allow capital that previously sat idle in stablecoins to be put to work.
JPMorgan strengthens tokenization strategy
The launch of MONY fits into the bank’s broader strategy. JPMorgan is increasingly testing public blockchains for institutional use cases, despite previous skepticism from bank CEO Jamie Dimon about bitcoin.
A week earlier, JPMorgan participated in the placement of commercial papers for Galaxy Digital, conducted on the Solana blockchain. The issuance was carried out via the USCP token, and settlements were made in USDC. The bank called the deal an important step in exploring the use of public networks in capital markets.
What’s next?
JPMorgan’s focus on money market funds shows a shift in the approach of major banks. Not experimental products, but basic and conservative instruments for institutions are being moved to the blockchain.
This changes the very logic of on-chain finance adoption. If money market funds already work on the blockchain, the next step could be large-scale tokenization of bonds and other key elements of the financial system.
Read more: Why Tether’s desire to buy ‘Juventus’ looks strange even for the crypto market
