Long forgotten are the days when JPMorgan executives treated crypto and blockchain as a short-lived market bubble. Today, the bank is filing its second Ethereum-based money market fund backed by U.S. Treasuries in under a year, just as the tokenized real-world asset market crosses $32 billion mark.
According to the JPMorgan’s SEC filing registered on Tuesday, the banking giant wants to establish a new blockchain-based money market product for its U.S. customers called the JPMorgan OnChain Liquidity-Token Money Market Fund with about $100 million in seed capital. It will be trading under the ticker JLTXX and issue tokenized shares on the Ethereum blockchain backed by short-term U.S. Treasury securities and overnight repurchase agreements.
The fund will operate through JPMorgan’s Kinexys Digital Assets platform — the bank’s blockchain infrastructure division previously known as Onyx. Tokenized fund shares can be transferred and settled on-chain while maintaining traditional custody and ownership records within regulated financial frameworks.
Tokenized money market funds are holding billions in investor money
Tokenized money market funds are a digital version of traditional money market funds, that invest in low-risk, short-term debt securities. The only difference with the legacy option is that digital ones are using blockchain technology and tokens to represent the fund’s shares. Money market funds are designed to maintain a stable net asset value (NAV), often aiming for $1 per share and are highly liquid. They are especially popular in times of economic turbulence as safety investments bringing moderate dividends.
Along with other tokenized real-world assets (RWAs), tokenized Treasury products growth brought the blockchain RWA market size to almost $20 billion in 2026 (Coingecko report). Since different industry estimates use various methodologies for calculation, other studies cite much bigger numbers for the market size (between $25-36B).
Tokenized funds offer significant operational advantages for investors, including near-instant settlement, improved transparency, programmable transfers, and reduced intermediary costs compared with traditional fund infrastructure.
MONY vs JLTXX: Two JPMorgan funds are now on Ethereum
The planned offering is the second bank’s attempt to leverage the power of Ethereum blockchain for its financial services. In late 2025, JPMorgan launched My OnChain Net Yield (MONY) Fund targeting qualified institutional investors.
Unlike MONY, JLTXX will focus on serving as tradeable on-chain collateral for stablecoin issuers needing compliant, yield-bearing Treasury exposure just in time as GENIUS Act stablecoin reserve requirements come into effect. Besides the GENIUS Act provisions, currently discussed in regulatory circles CLARITY Act promises to unlock some yield opportunities for the customers of trading platforms offering major ETF-ied tokens like Bitcoin, Ethereum, Solana, XRP, etc. In this context, combining blockchain-based digital assets with TradFi banking rails becomes even more actual.
How tokenized funds help stablecoin issuers remain compliant
Under the new U.S. GENIUS Act, stablecoin issuers must back their coins 1:1 with reserves held in highly liquid, government-backed assets, e.g. cash, T-bills, or equivalent instruments. Using traditional funding methods may cause friction in a crypto-native environment. Besides, traditional government-backed assets don’t bring stablecoin issuers earnings in a form they can easily deploy on-chain.
Tokenized money market funds solve this friction:
- They qualify as compliant reserves — since they hold T-bills and overnight repos, they satisfy the GENIUS Act’s backing requirements
- They’re on-chain — meaning a stablecoin issuer can hold, move, and verify reserves programmatically without bridging between traditional and crypto infrastructure
- They generate yield — unlike sitting on cash, the issuer earns Treasury returns on its reserve pile
- They’re liquid and transparent — settlement is near-instant and balances are verifiable on-chain, making audits and proof-of-reserves far simpler
Not only tokenized RWA market has grown enormously in the last year. Stablecoins are also accelerating their traction. Though the vast majority of modern stablecoin flows are still happening in crypto capital markets use cases, blockchain rails are registering more than $62 trillion of stablecoin transfers annually. If regulation decision-makers in Washington eventually decide to allow people and institutions legally use onchain tools to earn yield on their stablecoin assets, the adoption should grow exponentially.
Institutions rush to participate in the growing digital economy. Just several days before JPM filing, BlackRock, the world’s largest asset manager, also completed its filing paperwork for a new tokenized Treasury reserve vehicle and blockchain-based shares of an existing $7 billion money-market fund.
The article was updated on May 19, 2026 with minor corrections regarding fund size.
