“JPMorgan puts money markets on-chain, proving Ethereum is no longer the future of finance; it’s the present.”
JPMorgan Chase has taken an important step into blockchain financing with the launch of MONY. JPMorgan’s own $100 million is being used to seed the new fund, which is formally known as the My OnChain Net Yield Fund (MONY).
It’s the first Ethereum-based tokenised money market fund. The action demonstrates how established banks are now utilising blockchain to update popular financial products.
Starting this week, the bank intends to make the fund available to eligible outside investors. JPMorgan Asset Management, which is in charge of around $4 trillion in assets, manages MONY.
MONY functions similarly to a conventional money market fund. It seeks to provide consistent returns with daily interest and dividend accrual by investing in short-term, low-risk debt instruments.
The fund’s ownership is represented by digital tokens on Ethereum, which is what sets it apart.
Fund shares can be purchased and redeemed by investors with cash or USDC, a stablecoin backed by the US dollar. Transactions settle directly on the blockchain, eliminating the need for conventional financial rails and enabling quicker processing.
Through JPMorgan’s Morgan Money platform, investors receive tokens straight into their cryptocurrency wallets.
Kinexys Digital Assets, JPMorgan’s internal tokenisation technology, supports the fund. It is open to high-net-worth people and institutions that satisfy minimum investment conditions and is set up as a private fund.
The launch coincides with an increase in interest in tokenisation as a result of recent US legislation that clarified regulations for stablecoins and digital assets. JPMorgan wants to retain assets completely on-chain while providing investors with a well-known cash-management product via MONY.
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