JPMorgan has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to launch a second tokenized money market fund on the Ethereum blockchain. Dubbed the “OnChain Liquidity-Token Money Market Fund” (ticker: JLTXX), the vehicle will invest in U.S. Treasury bills and overnight repurchase agreements backed by Treasuries or cash, according to the Tuesday filing.
JLTXX complies with the GENIUS Act, a federal legal framework centered on stablecoins that was signed into law last July. The fund requires a minimum investment of $1 million and charges an annual fee of 0.16% after fee waivers. It will be managed by Kinexys Digital Assets, JPMorgan's blockchain division. The bank said the filing becomes effective Wednesday but did not disclose a launch date.
Analyst Flags 0.16% Fee as Notable
Bloomberg Intelligence analyst Eric Balchunas commented on X that the 0.16% expense ratio is “significant” for a stable-net-asset-value money market fund, placing it on the low end among peers. Traditional money market funds typically charge between 0.2% and 0.5%.
This is not JPMorgan’s first tokenized product. In December last year, the bank launched “My OnChain Net Yield Fund” (MONY), also on Ethereum, holding short-term debt securities and designed to offer returns above bank deposit rates with daily accrual of interest and dividends.
Wall Street Tokenization Race Heats Up
The JLTXX filing comes less than three weeks after rival Morgan Stanley introduced its own money market fund. In April, Morgan Stanley launched the “Stablecoin Reserves Portfolio,” enabling stablecoin issuers to deposit reserves backing their fiat-pegged tokens into the bank’s money market fund and earn interest.
Blockchain tokenization has drawn growing attention from Wall Street executives, many of whom see the technology as offering greater operational efficiency in trading and settlement versus legacy systems. According to RWA.xyz, over $32.2 billion in real-world assets (excluding stablecoins) have now been tokenized on-chain, spanning commodities, equities, bonds, and real estate.
Cross-Chain Experiment Advances
The JLTXX filing follows a trial transaction JPMorgan participated in last week, where a tokenized U.S. Treasury fund was transferred from the U.S. to JPMorgan’s Singapore bank account via the XRP Ledger and interbank settlement rails, completing the move in seconds. The cross-border settlement test, done in partnership with Mastercard, demonstrated tokenized assets’ potential in international payments.
IMF Warns of Tokenization Risks
In April, the International Monetary Fund (IMF) published a report flagging concerns about tokenization. The IMF argued that tokenization shifts risk from the banking system to shared ledgers and smart contract code, making intervention more difficult during “stress events.” It also warned that without legal clarity on ownership records and settlement finality, the tokenization market could face “fragmentation and marginalization.” Several industry participants, including “Shark Tank” investor Kevin O’Leary, have said that crypto market structure legislation — such as the CLARITY Act — is needed to address these issues.