JPMorgan Chase Launches Tokenized Money-Market Fund. Crypto and Wall Street Collide.

The bank will seed its first tokenized money-market fund with $100 million in capital. (Spencer Platt/Getty Images)

Key Points

• JPMorgan Chase is launching its first tokenized money-market fund, My OnChain Net Yield Fund, seeded with $100 million.
• The fund will be available to institutional investors with $25 million and individuals with $5 million, with a $1 million minimum investment.
• Tokenization, supported by JPMorgan’s Kinexys Digital Assets platform, involves digitizing equities for decentralized blockchain trading.

JPMorgan Chase’s asset-management arm is launching its first tokenized money-market fund, the company announced Monday.

The bank will seed the fund with $100 million in capital before opening it on Tuesday to institutional investors with at least $25 million in investments and individuals with at least $5 million. The private fund, called My OnChain Net Yield Fund, or “MONY,” has a minimum investment of $1 million.

Tokenization refers to digitizing equities to trade through decentralized blockchains rather than a traditional exchange. Wall Street has grown increasingly comfortable with tokenization and other crypto-adjacent products since the passage of the Genius Act in July, which established a regulatory framework for dollar-pegged stablecoins.

JPMorgan stock was up 0.7% on Monday. Shares had climbed 33% this year as of Friday’s close.

“We are excited to be a first mover with the launch of MONY,” said John Donohue, head of global liquidity at JPMorgan’s asset-management division. “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.”

Over the last few years, the bank has rolled out its own tokenization platform called Kinexys Digital Assets, which will support the MONY fund, the Wall Street Journal reported.

Write to Nate Wolf at nate.wolf@barrons.com