JPMorgan Launches Second Tokenized Fund on Ethereum
6JPMorgan has filed for its second tokenized money market fund on Ethereum, marking a significant step in mainstream finance embracing blockchain technology. This move shows how Wall Street is moving beyond theory and experimenting with regulated digital assets. With recent regulatory clarity, the gap between traditional finance and crypto infrastructure is closing fast.
JPMorgan’s New Tokenized Money Market Fund
The new fund, called JPMorgan OnChain Liquidity-Token Money Market Fund, will issue digital tokens on Ethereum that represent shares in a portfolio of US Treasuries and overnight repurchase agreements. Investors can hold these tokens in digital wallets, transfer them peer-to-peer, or use them as collateral in crypto markets. Transactions settle in minutes, unlike traditional fund shares, which can take days to process.
This fund is built on the same principles as a standard money market fund but exists on a public blockchain. It is designed to comply with the recent Genius Act, which provides a clear federal framework for dollar-linked stablecoins. This means the fund can operate within regulated boundaries while offering the speed and efficiency of blockchain transactions.
From Private to Public: Expanding Access
JPMorgan’s first tokenized fund, launched in December 2025, was called MONY. It focused on qualified investors and was privately placed. Now, the new fund aims for broader distribution, using a legal filing that allows for a wider investor base. The assets remain traditional—Treasuries and repos—but the shares are now moving on-chain, making them more flexible and tradable in digital markets.
What makes this development notable is how it shifts ownership from traditional transfer agents to direct blockchain custody. Investors hold tokens directly in their wallets, enabling fast transfers and integration with decentralized finance protocols. The underlying assets stay in traditional custody, but the ownership layer is now fully digital, speeding up settlement and transfer times.
Wall Street’s Growing Blockchain Commitment
JPMorgan isn’t alone in this effort. Last week, BlackRock filed paperwork for two tokenized money market funds targeting cash held in stablecoins. One fund invests directly in cash, Treasuries, and repos, while the other plans to tokenize an existing fund. BlackRock’s first tokenized product, launched in March 2024, manages over 2.5 billion dollars across multiple blockchain networks.
The market for tokenized assets is booming. Since early 2025, the total value has surged over 400%, reaching about 32 billion dollars. While still small compared to traditional mutual funds and ETFs, the rapid growth shows institutional interest. Major players like Goldman Sachs, Franklin Templeton, and BlackRock are all testing or launching similar products.
This shift indicates a change in how Wall Street views blockchain technology. Firms that once dismissed it are now racing to build regulated products on crypto infrastructure. The trend is supported by new laws, such as the Genius Act, which clarifies the legal landscape for stablecoins and tokenized assets. These developments suggest that digital assets are becoming integral to traditional finance’s future.
Overall, JPMorgan’s second tokenized fund demonstrates how traditional assets are increasingly being moved onto blockchain platforms. This allows for faster transactions, broader access, and more innovative uses in DeFi and crypto markets. As more institutions follow suit, the line between conventional finance and crypto continues to blur, paving the way for a more digital financial ecosystem.
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