JPMorgan launches Ethereum tokenized money market fund

JPMorgan disclosed in a filing on Tuesday that it will launch the OnChain Liquidity-Token Money Market Fund, a tokenized money market vehicle on the Ethereum blockchain designed to meet reserve requirements for U.S. stablecoin issuers under the GENIUS Act.

The filing says the fund’s portfolio will consist of U.S. Treasurys and overnight repurchase agreements collateralized by Treasurys or cash. JPMorgan described the holdings as the types of highly liquid assets the GENIUS Act identifies as eligible reserve assets for regulated stablecoins.

Blockchain operations for the fund will be managed by Kinexys Digital Assets, a JPMorgan business unit. The tokenized structure will record ownership of fund shares on-chain, which the filing says could allow faster settlement and simpler integration with digital-asset platforms.

The filing includes a statement that “The Fund invests in a manner intended to satisfy the requirements for eligible reserve assets that stablecoin issuers are required to maintain under the Guiding and Establishing National Innovation for U.S. Stablecoins Act.” It also notes that “The Ethereum blockchain, a public blockchain network, is currently the only available blockchain for use by investors, although expansion to other blockchains is anticipated in the future.”

JPMorgan’s Kinexys unit will run the blockchain layer while the fund itself holds conventional short-duration securities and repo agreements backed by Treasurys or cash.

Franklin Templeton already offers a comparable tokenized money market product, showing other asset managers have introduced on-chain funds that could serve as reserve assets for regulated stablecoins.

The GENIUS Act, formally the Guiding and Establishing National Innovation for U.S. Stablecoins Act, would require U.S.-compliant stablecoin issuers to back tokens with specified eligible reserve assets such as U.S. Treasurys, cash and insured bank deposits and to meet other operational and disclosure standards. JPMorgan designed the fund to align with the statutory definitions by focusing on government-backed short-term debt and repo agreements collateralized by Treasurys or cash.

The filing did not provide a launch date or specify minimum investment amounts. It states that investors will access the product via the Ethereum network initially, with potential expansion to other blockchains in the future.