JPMorgan plans blockchain fund using ETH for $32 billion market

JPMorgan has accelerated its tokenization initiatives, announcing plans to launch a new blockchain-based money market fund. According to a recent filing with the U.S. Securities and Exchange Commission, the fund will invest in traditional financial instruments, including short-term U.S. Treasury bonds, cash, and overnight repurchase agreements backed by government debt.

Next-generation fund on the blockchain

Dubbed the “OnChain Liquidity-Token Money Market Fund,” JPMorgan’s project will allow investors to manage their fund rights via token balances recorded directly on the blockchain. The fund will operate on the Ethereum network, enabling authorized investors to submit purchase, redemption, or transfer requests seamlessly through this blockchain infrastructure.

The fund’s technical backbone will be provided by Kinexys Digital Assets, JPMorgan’s dedicated blockchain technology unit, previously known as Onyx. With a focus on integrating blockchain into traditional finance, Kinexys also ensures the fund’s structure aligns with reserve asset requirements established under the U.S. GENIUS Act, which seeks to regulate stablecoin issuers in the country.

Institutional race in tokenization

JPMorgan’s initiative illustrates a growing trend among traditional financial institutions to embrace crypto and blockchain technologies. This move comes shortly after BlackRock filed for blockchain-based treasury products, including a roughly $7 billion tokenized money market fund, further signaling rising corporate interest in digital asset tokenization.

Tokenization—the process of representing conventional financial assets as digital tokens on a blockchain—has become one of the most prominent trends in both crypto markets and the wider finance sector. Proponents highlight its potential to speed up settlement times, increase transparency, and enable near-instantaneous transactions for investors and institutions.

The fund has been structured to invest exclusively in short-term Treasury securities and government-backed repo agreements. Investors will be able to monitor their holdings on the blockchain and process their requests directly via the Ethereum network.

Growth in real-world asset tokenization

The total market value of conventional assets represented on blockchains has more than doubled in the past year, surpassing $32 billion. Treasury products have been especially influential in this surge, as institutions seek efficient ways to manage their on-chain cash positions using such innovative offerings.

JPMorgan has established itself as a leader in bringing blockchain technology into the mainstream banking sector. In December, the bank launched a money market fund called MONY on the Ethereum blockchain, providing institutional investors with digital access to short-term cash products. Kinexys further manages tokenized collateral transactions and settlements for corporate clients, underscoring JPMorgan’s commitment to digital financial infrastructure.