JPMorgan Asset Management has launched its first tokenized money market fund, My OnChain Net Yield Fund (MONY), which is now available on the public Ethereum blockchain.
The fund is offered to qualified investors through Morgan Money, the firm’s platform for trading and analytics in liquidity management.
MONY, a 506(c) private placement fund, is built on Kinexys Digital Assets’ multi-chain tokenization technology, the company said on Monday. It allows investors to earn US dollar yields while holding tokens representing fund shares on the blockchain.
According to the company, the fund invests exclusively in US Treasury securities and repurchase agreements fully collateralized by Treasuries, providing daily dividend reinvestment and subscription or redemption in cash or stablecoins.
The launch positions JPMorgan as the largest global systemically important bank (GSIB) to offer a tokenized money market fund on a public blockchain.
Qualified investors receive fund tokens at their blockchain addresses, which the firm says can offer increased transparency, peer-to-peer transferability, and potential for broader collateral usage within blockchain networks.
"Active management and innovation are at the heart of how we deliver new solutions for investors navigating today's financial landscape," JPMorgan Asset Management CEO George Gatch said in a statement. "By harnessing technology alongside our deep expertise in active management, we're able to provide clients with advanced, innovative, and cost-effective capabilities that help them achieve their investment goals."
John Donohue, JPMorgan Asset Management’s Head of Global Liquidity, added that he expects other GSIB banks to follow its lead in providing clients more optionality when it comes to investing in money market funds. “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,” Donohue said.
Shares of JPMorgan traded modestly higher on the news, adding 0.4% at about $320.