JPMorgan Chase has expanded its blockchain finance strategy with a new tokenized money market fund on Ethereum.
The banking giant submitted documentation to the US Securities and Exchange Commission for the OnChain Liquidity-Token Money Market Fund under the JLTXX ticker.
The filing marks JPMorgan’s second tokenized fund after launching the MONY fund in late 2024.
The product targets stablecoin issuers seeking compliant reserve assets backed by short-term government securities.
Ethereum blockchain powers JPMorgan’s new tokenized fund
The new fund will invest in short-duration US Treasury securities, cash holdings, and overnight repurchase agreements backed by government assets.
Regulatory documents showed the SEC approved the filing on May 13. However, JPMorgan has not confirmed an official launch date.
JPMorgan said its Kinexys Digital Assets division will manage the blockchain infrastructure supporting JLTXX.
The division previously operated under the Onyx brand before the rebranding. Ethereum will serve as the only blockchain network available to participants during the initial phase.
The bank added that it plans to integrate additional blockchain networks in the future. JPMorgan designed the fund specifically for stablecoin reserve management.
According to the filing, the product aligns with reserve requirements established under the GENIUS Act.
The legislation requires stablecoin issuers to hold reserves in liquid assets such as US Treasury securities, cash equivalents, and insured bank deposits.
JPMorgan stated in the filing that JLTXX aims to satisfy eligible reserve asset requirements under the law.
The move represents a shift from the bank’s earlier MONY fund strategy. MONY focused on institutional investors managing on-chain liquidity.
In contrast, JLTXX targets the growing stablecoin reserve market directly.
Wall Street firms accelerate tokenized asset expansion
Several major financial institutions have recently entered the tokenized asset market. Morgan Stanley launched a similar money market product last month, targeting stablecoin reserves. However, that offering does not operate on blockchain infrastructure.
Franklin Templeton also expanded its blockchain finance operations through its BENJI tokenized fund product.
Meanwhile, BlackRock recently filed paperwork for a tokenized Treasury reserve product and blockchain-enabled shares tied to an existing $7 billion money market fund.
Data from RWA.xyz showed the tokenized real-world asset market reached nearly $32.2 billion on May 12.
The sector has grown more than 200% over the past year. Tokenized US Treasury products accounted for roughly $15.9 billion of the total market.
Financial firms continue exploring tokenization because blockchain systems can speed up settlements, improve transparency, and support around-the-clock trading.
JPMorgan has already completed tokenized collateral and settlement transactions for institutional clients through its Kinexys platform.
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