JPMorgan Chase, the largest bank in the United States, has launched a tokenized money market fund (MMF) based on the Ethereum blockchain, marking the full-scale launch of its asset tokenization strategy. This marks the first time a core traditional financial product, a money market fund, has been moved on-chain, signaling that Wall Street's blockchain experiment has moved beyond the pilot phase and into the realm of real-world use.
According to the Wall Street Journal on the 15th (local time), JP Morgan Chase, through its asset management division, which manages approximately $4 trillion (approximately 5,863 trillion won), will launch a tokenized money market fund (MMF) based on the Ethereum blockchain. JP Morgan will inject $100 million (approximately 146.6 billion won) of its own funds as seed capital into the fund and open it to external investors starting on the 16th.
This product operates on a blockchain platform, utilizing a money market fund, a type of ultra-short-term financial product. The fund is called "My OnChain Net Yield Fund," abbreviated as MONY. JP Morgan's tokenization platform, Kinexys Digital Assets, will be utilized for operations, token issuance, and management.
Investors can subscribe to the fund through JP Morgan's existing money market investment platform, Morgan Money. Upon subscription, digital tokens representing fund shares are delivered to a crypto wallet. Subscriptions and redemptions are possible not only with cash but also with USDC, the dollar stablecoin issued by Circle. This structure connects traditional financial accounts, blockchain wallets, and stablecoins into a single investment stream.
MONY, like traditional money market funds, invests in relatively safe short-term debt securities like government bonds, and interest and dividends accrue daily. However, its key difference lies in the fact that operations, settlements, and equity management are conducted on the blockchain. This, it is explained, can simultaneously improve payment delays, brokerage costs, and operational transparency.
The Wall Street Journal reported that money market fund assets have been rapidly increasing over the past year, and the market capitalization of stablecoins has surpassed $300 billion (approximately 440 trillion won). Analysts say that following the passage of the Genius Act, a stablecoin regulatory bill through the U.S. Congress, major Wall Street financial firms are rushing to launch tokenized financial products, alleviating regulatory uncertainty.
JP Morgan's choice of Ethereum is also significant. Global asset management companies and banks are already tokenizing government bonds, funds, and deposits within the Ethereum ecosystem, making it the most stable infrastructure in terms of liquidity and standards. Furthermore, by adopting USDC as a means of payment, it seamlessly connects on-chain finance with the existing dollar system.
This case demonstrates that asset tokenization is no longer an experimental technology but is becoming a core revenue product for major financial institutions. The tokenized money market fund (MMF) movement, which began on Wall Street, is likely to rapidly expand to include government bonds, corporate bonds, and alternative investment products. As the global financial infrastructure is being reorganized around blockchain, attention is focused on the roles that the Korean financial sector and digital asset industry will play.
