JPMorgan Takes a Step into Crypto: Launch of Tokenized Fund on Ethereum Opens New Horizons for Institutions

The bank has announced the launch of its first tokenized money market fund, My OnChain Net Yield Fund (MONY), on the Ethereum blockchain. The fund starts with its own capital of $100 million and will be available to qualified investors, including individual clients with a minimum of $5 million in investments and institutions with $25 million. The minimum contribution is $1 million. Investors can subscribe through the Morgan Money portal, receiving digital tokens into their crypto wallets, with settlements in cash or the USDC stablecoin. The fund invests in short-term debt securities, accruing interest and dividends daily, and is supported by JPMorgan's Kinexys Digital Assets tokenization platform.

This move provides institutional investors with access to round-the-clock instant settlements using tokenized bank deposits. At JPMorgan, they emphasize the "huge" interest from clients in tokenization, which allows earning on assets that are fully stored on the blockchain, solving the problem of "idle" funds in stablecoins without interest. For fund managers, tokenization reduces costs and speeds up settlements, and some tokenized funds are already accepted as collateral on crypto exchanges.

At Binance Blockchain Week 2025, which concluded on December 4 in Dubai, industry leaders actively discussed tokenization as a new impetus for market growth. Discussions covered the tokenization of real-world assets (RWA) - from real estate to commodities, which opens up mass investment opportunities and increases liquidity. For example, debates between CZ (founder of Binance) and Peter Schiff touched on Bitcoin versus tokenized gold, highlighting the potential of tokenization for traditional assets. Experts also emphasized the role of clearer regulations, institutional capital, and the combination of AI with blockchain in shaping the future of crypto. In the event recap, it was mentioned that tokenization, along with liquidity cycles and stablecoin infrastructure, is becoming a key factor for global payments and on-chain data.

According to the EY 2025 survey, 59% of institutional investors plan to allocate more than 5% of assets under management to cryptocurrencies, with a focus on the US and hedge funds. The AIMA report indicates that hedge funds' exposure to crypto assets grew to 55% in 2025 compared to 47% in 2024, thanks to crypto-friendly regulations. The a16z "State of Crypto 2025" report highlights institutional adoption, the growth of stablecoins (over $300 billion market capitalization), and tokenization as a path to mainstream. The World Economic Forum predicts that tokenization will reduce settlement risks and optimize portfolios through programmable, real-time asset transfers.

This JPMorgan launch follows similar initiatives by competitors, such as BlackRock with a fund over $1.8 billion, and partnerships by Goldman Sachs and Bank of New York Mellon. After the passage of the Genius Act earlier this year, which established a regulatory framework for stablecoins, Wall Street has accelerated the tokenization of stocks, bonds, funds, and real assets. The money market funds market grew to $7.7 trillion in 2025.

Tokenization could indeed become the area that brings the crypto market the missing liquidity, bridging traditional finance with blockchain. The growing interest from institutions, as shown by IOSCO surveys, indicates a shift from experiments to mass adoption.