JPMorgan, certainly one of the world's largest banks, is expanding its presence in tokenized finance by launching its first money market fund through its $4 trillion asset management division.
The fund, My OnChain Net Yield Fund, will trade under the ticker symbol MONY and shall be available on the general public Ethereum blockchain, JPMorgan said in an announcement shared with Cointelegraph on Monday.
Launched through Kinexys Digital Assets, JPMorgan's proprietary tokenization platform, MONY is a 506(c) private placement fund that provides qualified investors the chance to earn U.S. dollar returns by subscribing through its Morgan Money institutional trading platform.
“With Morgan Money, tokenization can fundamentally transform the speed and efficiency of transactions and add recent functionality to traditional products,” said John Donohue, head of worldwide liquidity at JP Morgan Asset Management.
MONY investors can receive tokens to their blockchain addresses
By launching MONY, JPMorgan has turn into the world's largest systemically vital bank to launch a tokenized money market fund (MMF) on a public blockchain, the bank said within the announcement.
The tokenization of the fund offers greater transparency, peer-to-peer transferability and the potential for broader use of collateral throughout the blockchain ecosystem, it said.
JP Morgan Asset Management's My OnChain Net Yield Fund (MONY) is issued through Kinexys Digital Assets and available to investors through Morgan Money. Source: JPMorgan
“This represents a big advancement in the best way assets shall be traded in the longer term,” Donohue said, highlighting Morgan Money’s role in allowing qualified investors to access the fund and receive tokens on their blockchain addresses.
Launched in 2019, Morgan Money offers a real-time investment dashboard and a single access point for operations, allowing investors to develop stronger liquidity strategies.
“Morgan Money is the primary institutional liquidity trading platform to integrate traditional and on-chain assets, providing investors with access to a comprehensive range of cash market products,” JPMorgan said.
Subscriptions and redemption in money or stablecoins
According to the announcement, MONY will only spend money on traditional US treasuries and repurchase agreements fully collateralized by US treasuries, allowing qualified investors to earn returns while holding the token on the blockchain.
Additionally, it offers day by day dividend reinvestment, allowing investors to subscribe and redeem using money or stablecoins through the Morgan Money platform.
Cointelegraph asked JPMorgan which stablecoins can be supported as a part of the offering, but had not received a response on the time of publication.
JPMorgan’s launch of MONY marks one other milestone within the race by traditional financial institutions to launch regulated tokenized products. The news got here weeks after the corporate initiated the primary transaction through its upcoming fund tokenization platform Kinexys Fund Flow, which is predicted to launch in 2026.
On Thursday, JPMorgan also announced the issuance of a U.S. business paper for Galaxy Digital Holdings on the Solana blockchain, marking certainly one of the earliest debt offerings ever conducted on a public blockchain.
