Traditional financial companies' 'On-Chain rush' begins in earnest… JP Morgan also unveils tokenized money market fund on Ethereum

Last Monday, JP Morgan introduced the tokenized money market fund MONY(My OnChain Net Yield Fund) on the Ethereum blockchain. This product launch signals that traditional finance is no longer viewing blockchain technology as merely an experimental tool but as a means of generating real profits.

Traditional Financial Giants’ Preemptive Strike… From ‘Trend’ to ‘Traffic’

In fact, the asset capitalization boom has been underway for quite some time.

Franklin Templeton has been operating the Franklin OnChain US Government Money Fund on various blockchains such as Ethereum, Avalanche, Stellar, and Aptos since 2021. BlackRock was more aggressive. In just eight months after launching a tokenized money market fund called BUIDL in March 2024 in partnership with Securitize, it grew to a market cap of over $2 billion and is now operating in parallel across eight networks including Ethereum and Solana.

Now that JP Morgan has officially entered the scene, it could be a signal. George Gatch, CEO of JP Morgan Asset Management, stated, “We aim to combine technology and active management capabilities to provide more innovative and cost-effective solutions to our clients.”

The Identity of MONY… A ‘Premium Product’ for ‘Qualified Investors Only’

MONY is designed as a 506© private placement product. Its assets are invested solely in U.S. Treasury bonds and repurchase agreements collateralized by Treasury securities, offering a daily dividend reinvestment structure.

Specific entry barriers include:

• Minimum investment: $1 million
• Individual investor requirement: assets of at least $5 million
• Institutional investor requirement: assets of at least $25 million

Ahead of the qualified investor offering on Tuesday, JP Morgan has already invested $100 million as seed capital. For reference, JP Morgan Asset Management manages $4.6 trillion in assets and has a market cap of $867 billion as of Q3, making it a major player in the industry.

Technological Infrastructure… Blurring the Lines Between Traditional and On-Chain

The actual operation of MONY is handled by JP Morgan’s Kinexys Digital Assets, which provides the tokenization infrastructure. Subscriptions and redemptions can be processed entirely in cash or USDC stablecoin via the Morgan Money platform.

John Donohue, Head of Global Liquidity at JP Morgan Asset Management, said, “Tokenization can fundamentally change the speed and efficiency of money market fund transactions,” and predicted that other large global financial institutions will soon launch similar products.

Regulatory Winds Drive the ‘Drive’

Behind these developments is a shift in U.S. regulatory stance. SEC Chair Paul Atkins announced Project ( to promote on-chain inflows into the U.S. financial markets, and Nasdaq has submitted an application to the SEC to list and trade tokenized stocks and tokenized exchange-traded products (ETPs) on its platform.

JP Morgan has also been actively expanding its blockchain network recently. Last month, it facilitated the issuance of commercial paper for Galaxy Digital on the Solana network, launched deposit tokens on Coinbase’s Base network, and is even proposing structured products linked to Bitcoin prices.

Ultimately, the ‘launch of MONY’ signifies that crypto is not just following traditional finance but that traditional finance is directly adopting crypto’s technological rails. And the pace of this shift is much faster than expected.