Key Takeaways
JPMorgan Chase filed to launch its second tokenized money market fund on the Ethereum blockchain, aiming to provide a compliant reserve asset for stablecoin issuers ahead of the U.S. GENIUS Act.
"The Fund invests in a manner intended to satisfy the requirements for eligible reserve assets that stablecoin issuers are required to maintain under the Guiding and Establishing National Innovation for U.S. Stablecoins Act," the bank’s SEC filing stated.
The JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX) will invest in U.S. Treasury securities and repurchase agreements. It follows the bank's first tokenized fund, MONY, which launched in December 2025, and will be operated by its Kinexys Digital Assets unit on Ethereum.
This filing positions JPMorgan to capture a share of the mandatory reserves from the multi-billion dollar stablecoin market, pending the GENIUS Act's final passage. The move further solidifies Ethereum's role as the primary settlement layer for the $15.9 billion tokenized U.S. Treasury market.
The launch intensifies competition among traditional finance giants moving on-chain. BlackRock and Franklin Templeton have already launched similar tokenized money market funds on Ethereum, with Franklin Templeton's BENJI fund also accessible on other chains like Avalanche. The total market for tokenized real-world assets has grown to $32.2 billion as of May 12, according to data from RWA.xyz.
JPMorgan’s choice to again build on Ethereum highlights the network's dominance in hosting tokenized assets, accounting for over 53% of the market share. "As banks and other build stuff on blockchain space, it’s almost all going to happen on Ethereum for the next couple of years, I think,” Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered, told BeInCrypto.
The fund's shares will have total annual operating expenses of 0.71%, though JPMorgan has agreed to cap net expenses at 0.16% through June 30, 2028. While investing in low-risk government securities, the filing explicitly notes "blockchain technology risk" and "stablecoin issuer shareholder transactions risk" as novel factors for investors to consider.
This article is for informational purposes only and does not constitute investment advice.
