JPMorgan has officially launched its second tokenized U.S. Treasury money-market fund on Ethereum, marking a significant milestone in the bank's blockchain strategy. According to the latest SEC filing, the fund, dubbed JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX), will invest exclusively in short-term U.S. Treasuries, cash and overnight repo agreements backed by government securities. The fund will maintain blockchain-based token balances tied to investors' ownership records, allowing approved users to submit purchase, redemption and transfer requests through Ethereum. This represents JPMorgan's continued expansion in the tokenized asset market following its earlier successful launch of the MONY fund late last year, which was launched in December 2025 with an initial investment of $100 million.
The fund is strategically structured to satisfy reserve asset requirements under the GENIUS Act, legislation aimed at regulating stablecoin issuers in the U.S. As reported in the latest filing, JPMorgan aims to have the fund '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. The prospectus specifically states 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 (otherwise referred to as the GENIUS Act) and regulations adopted thereunder, to support investment in the Fund by stablecoin issuers seeking to comply with such requirements.' This positioning could make the product a yield-bearing reserve vehicle for stablecoin firms seeking compliant Treasury exposure, as U.S.-compliant stablecoin issuers will be required to back their tokens with highly liquid assets such as U.S. Treasuries, cash and insured bank deposits. The underlying blockchain infrastructure will be operated by Kinexys Digital Assets, JPMorgan's blockchain unit formerly known as Onyx.
JPMorgan's prospectus signals that JLTXX will start on Ethereum but may expand to other networks in the future. According to BeInCrypto's Expert Council, Ethereum hosts the majority of distributed tokenized real-world asset (RWA) value tracked by RWA.xyz, currently accounting for more than 53.99% of the distributed RWA market share and supporting around 846 tokenization projects. The network has become the leading settlement layer for institutional issuance, including funds from BlackRock and Franklin Templeton. Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered, told BeInCrypto that 'I think Ethereum probably wins for the next little while on the back of TradFi getting involved. As banks and other build stuff on blockchain space, it's almost all going to happen on Ethereum for the next couple of years, I think.' He expects Ethereum to win the bulk of TradFi flows over the next couple of years due to institutional preference for risk management, comfort, and defensibility.
The SEC filing became effective May 13, though JPMorgan did not disclose a launch date for the fund. The tokenized real-world asset market has grown to roughly $32.2 billion as of May 12, with tokenized U.S. Treasury products making up the largest share at around $15.9 billion according to data from RWA.xyz. The filing comes only days after BlackRock, the world's largest asset manager, filed paperwork for a new tokenized Treasury reserve vehicle and blockchain-based shares of an existing $7 billion money-market fund. Treasury products have emerged as one of the fastest-growing segments as institutions seek ways to earn yield on onchain cash.
JPMorgan's new fund resembles a similar stablecoin reserve-focused money market fund launched last month by Morgan Stanley, though that product is not operating on blockchain rails. The bank has been among the most active traditional banks embedding blockchain infrastructure in traditional finances, with the Ethereum blockchain currently being the only available blockchain for use by investors, although expansion to other blockchains is anticipated in the future. Through Kinexys, JPMorgan has also processed tokenized collateral and settlement transactions for institutional clients, demonstrating its commitment to integrating traditional finance with blockchain technology. The launch deepens JPMorgan's tokenization push alongside similar initiatives from institutional players.
