JPMorgan files 2nd tokenized fund on Ethereum

JPMorgan Chase filed with the US SEC on May 12 for a second tokenized money market fund on Ethereum as it expands its blockchain finance push.

It plans to offer digital tokens linked to a portfolio of US Treasuries and overnight repurchase agreements.

The filing says investors could hold the tokens in digital wallets or use them as collateral.

That transactions would settle in minutes while the assets stay with a traditional custodian.

The product follows JPMorgan’s MONY fund.

This comes as firms including BlackRock file similar offerings under the Genius Act while rwa.xyz estimates tokenized assets are now worth about US$32 billion.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

New law separates digital dollars for payments from those for investing

The GENIUS Act, a US stablecoin law signed in July 2025, set rules that ban permitted payment stablecoin issuers from paying interest or yield to holders 1.
The rule keeps payment stablecoins focused on spending and transfers, while leaving room for a separate market in yield-bearing on-chain products 2.
That opening has pushed firms like JPMorgan to roll out tokenized money market funds. These funds fall under US Securities and Exchange Commission (SEC) rules and can pass yield to investors.
These offerings aim at institutional clients. JPMorgan’s first fund, MONY, requires at least US$1 million from qualified investors, including institutions with US$25 million or more in assets 3.

Tokenized funds are becoming parts of new financial plumbing

JPMorgan’s fund is framed as part of on-chain financial infrastructure through Kinexys Digital Assets, JPMorgan’s blockchain-based asset platform 3.
With a regulated token that pays yield, banks are now going after corporate treasury and institutional cash management, an area where stablecoins face limits because issuers cannot pay interest under the GENIUS Act 2.
The plan reaches past basic investing. These tokens are meant to serve as on-chain collateral, which could speed margining and other collateral management work.
This approach lets established financial firms use their experience in regulated fund management as the market moves from trial runs to live systems 4.