sandmark.com
JPMorgan Chase & Co (JPM) is accelerating its blockchain strategy by filing for a second tokenized money market fund on Ethereum. The new vehicle targets stablecoin issuers seeking compliant reserve assets under the $GENIUS Act.
The JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX) will invest primarily in short-term US Treasury bills, bonds and notes with maturities of 93 days or less, plus overnight repurchase agreements fully collateralized by Treasuries or cash. This structure directly addresses $GENIUS Act requirements for 1:1 backing with high-quality liquid assets, helping issuers maintain regulatory compliance while gaining onchain liquidity.
The prospectus explicitly notes that adherence to these strict reserve rules "may cause lower yields than those of other money market funds" permitted to hold a broader range of investments. This potential yield compression reflects the trade-off between institutions prioritizing safety and regulatory alignment in the post-$GENIUS Act era.
Builds on MONY success
The filing comes four months after the December 2025 debut of the My OnChain Net Yield Fund (MONY), which JPMorgan seeded with $100mn of its own capital. Both funds operate on public Ethereum infrastructure and cater to qualified institutional and high-net-worth investors seeking enhanced cash yields combined with near real-time settlement.
US Treasuries continue to dominate tokenized real-world assets (RWA). They account for roughly $15bn of the total RWA market capitalization between $25bn and $32bn, according to RWA.xyz. Tokenized government debt provides programmability, transparency and collateral utility in decentralized finance (DeFi) protocols.
Kinexys infrastructure layer
JPMorgan’s Kinexys Digital Assets unit, formerly Onyx, powers the fund as technology provider, infrastructure operator and regulatory gatekeeper. It handles permissioning, ledger management and fiat-to-crypto bridging while traditional custodians safeguard underlying assets. Tokenized shares enable 24/7 transfers among approved Ethereum wallets.
This mirrors competitive offerings. BlackRock’s BUIDL fund, which has grown to over $2.3bn and expanded across multiple chains including Ethereum layer-2 networks, sets the pace for institutional tokenized liquidity. Franklin Templeton’s BENJI fund similarly tracks US government debt on public blockchains. JPMorgan’s JLTXX differentiates itself with a specific focus on $GENIUS Act-compliant reserves for stablecoin issuers.
Risks, forward strategy
Like other tokenized products, JLTXX carries smart contract, custody and regulatory evolution risks, though JPMorgan’s permissioned allow list and institutional-grade controls aim to mitigate them. The $1mn minimum investment and institutional focus align with peers such as BlackRock’s offerings, which often require $5mn or more.
"This marks a significant step forward in how assets will be traded in the future," said John Donohue, head of global liquidity at JP Morgan Asset Management, in comments around the MONY launch that apply to the broader tokenized liquidity push.
The move fits JPMorgan’s wider post-$GENIUS Act strategy of bridging traditional finance with blockchain efficiency. By expanding public Ethereum exposure through Kinexys, the bank positions itself to capture growing institutional demand for programmable Treasuries while supporting the regulated stablecoin ecosystem.