JPMorgan to Launch Tokenized Fund for Stablecoin Issuers
BITmarkets Team
May 14, 2026
The proposed fund, called the “OnChain Liquidity-Token Money Market Fund” with the ticker JLTXX, would invest in US Treasury bills and overnight repurchase agreements backed by US Treasurys or cash, according to a Tuesday filing with the US Securities and Exchange Commission. JLTXX is designed to align with the GENIUS Act, a stablecoin-focused law signed in July.
The product will require a minimum investment of $1 million and carry a 0.16% annual fee after waivers. Management of the fund will be handled by JPMorgan’s blockchain division, Kinexys Digital Assets. While the filing becomes effective Wednesday, JPMorgan has not yet announced an official launch date for the fund.
Wall Street continues push into tokenization
Tokenization has continued attracting interest from major financial institutions, many of which see blockchain-based settlement systems as potentially more efficient than traditional infrastructure.
According to data from RWA.xyz, more than $32.2 billion in real-world assets (excluding stablecoins) are currently tokenized onchain. The sector now includes tokenized commodities, stocks, bonds, and real estate.
Bloomberg ETF analyst Eric Balchunas described JPMorgan’s filing as a “big deal,” particularly noting the relatively low 0.16% fee for a money market fund designed to maintain a stable asset value.
JPMorgan expands blockchain-based financial products
The filing follows JPMorgan’s earlier blockchain-based product, the My OnChain Net Yield Fund (MONY), which launched in December and also operates on Ethereum. MONY invests in short-term debt securities intended to generate yields above standard bank deposit rates, with interest and dividends accruing daily.
JPMorgan has also continued participating in blockchain settlement pilots. Last week, the bank took part in a transaction involving the transfer of a tokenized US Treasury fund through the XRP Ledger and interbank settlement rails into one of JPMorgan’s Singapore bank accounts within seconds.
Other institutions have launched similar initiatives. In April, Morgan Stanley introduced the Stablecoin Reserves Portfolio, allowing stablecoin issuers to place reserves backing fiat-pegged tokens into money market funds while earning interest.
Despite the growing momentum, concerns around tokenization remain. In an April report, the International Monetary Fund warned that tokenization could transfer financial risk away from traditional banking systems and into shared ledgers and smart contract infrastructure, potentially complicating interventions during “stress events.”
The IMF also cautioned that without legal clarity regarding ownership records and settlement finality, tokenized markets could remain “fragmented and peripheral.” Several industry figures, including Kevin O’Leary, have argued that additional crypto market structure legislation, such as the CLARITY Act, may be necessary to address these issues.
Sources:
https://www.sec.gov/Archives/edgar/data/1659326/000119312526217424/d44657d485bpos.htm
http://cointelegraph.com/news/jpmorgan-files-second-tokenized-money-market-fund-ethereum
https://x.com/tokenterminal/status/2054318881859051999