J.P. Morgan launches first tokenised money market fund on public blockchain

The asset manager has made the fund available to qualified investors via its Morgan Money platform, using Ethereum to issue and hold tokenised interests

J.P. Morgan Asset Management has launched its first tokenised money market fund, structured as a private placement and issued on the public Ethereum blockchain, according to the firm.

The fund, called My OnChain Net Yield Fund (MONY), is structured as a 506(c) private placement and is accessible exclusively through the firm’s Morgan Money trading and analytics platform.

According to J.P. Morgan Asset Management, the fund allows qualified investors to earn US dollar yields while holding a tokenised interest on-chain.

MONY is powered by Kinexys Digital Assets, the firm’s asset tokenisation platform. Investors receive tokens directly at their blockchain addresses and may subscribe to or redeem from the fund using cash or stablecoins via Morgan Money. The fund offers daily dividend reinvestment.

J.P. Morgan Asset Management said MONY invests only in US Treasury securities and repurchase agreements that are fully collateralised by U.S Treasury securities. The firm said the tokenised structure is intended to provide transparency and peer-to-peer transferability.

J.P. Morgan said it is the largest global systemically important bank to launch a tokenised money market fund on a public blockchain.

“Active management and innovation are at the heart of how we deliver new solutions for investors navigating today’s financial landscape,” George Gatch, chief executive of J.P. Morgan Asset Management, said. “By harnessing technology alongside our deep expertise in active management, we’re able to provide clients with advanced, innovative, and cost-effective capabilities that help them achieve their investment goals.”

John Donohue, head of global liquidity at J.P. Morgan Asset Management, added: “We are excited to be a first mover with the launch of MONY, and we expect other GSIB banks to follow our lead in providing clients with greater optionality in how they invest in money market funds.”

“With Morgan Money, tokenization can fundamentally change the speed and efficiency of transactions, adding new capabilities to traditional products,” he added. “This marks a significant step forward in how assets will be traded in the future, and we’re excited about the opportunities this creates for our clients and for the whole industry.”

The firm said MONY reflects growing interest in the tokenisation of assets on public blockchain networks. The fund is available only to investors who qualify as accredited investors and qualified purchasers under U.S securities laws.

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