JPMorgan Bank is launching a tokenized money market fund on the Ethereum blockchain called the My OnChain Net Yield Fund (MONY), reports The Wall Street Journal. According to the publication, JPMorgan will provide $100 million of its own capital to the fund and open access to it on Tuesday, December 16th.
The fund is supported by the bank's own tokenization platform, Kinexys. It will be open to qualified investors or individuals with a minimum investment of $5 million, as well as institutions with a minimum investment of $25 million.
The minimum investment in the fund is $1 million. Investors will be able to contribute funds in dollars or in the USDC stablecoin and receive the fund's tokens in a crypto wallet.
Like most money market funds, MONY consists of low-risk short-term securities. It pays interest daily and accrues dividends. The bank noted the growing demand for digital versions of traditional instruments.
"Clients are showing tremendous interest in tokenization. And we expect to become a leader in this area and work with clients to ensure that we have a product line that will allow them to have the same choice on the blockchain as in traditional money market funds," said John Donohue, head of global liquidity at JPMorgan Asset Management.
It is noted that tokenized money market funds are of interest to crypto investors because, unlike stablecoins, they allow holders to earn yield while keeping assets on the blockchain. Also, some tokens of such funds are accepted as collateral on crypto exchanges.
The total assets of money market funds have grown to $7.7 trillion. The largest fund remains BUIDL from BlackRock, launched in the spring of 2024. According to DeFillama, the total value locked (TVL) in BUIDL has exceeded $2 billion, and the tokens are already represented on six blockchains.
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