JPMorgan files Ethereum tokenized money market fund JLTXX

JPMorgan filed with the U.S. Securities and Exchange Commission to launch JLTXX, the OnChain Liquidity-Token Money Market Fund, a tokenized money market fund that will operate on the Ethereum blockchain. The fund is designed to allow stablecoin issuers to hold backing reserves in a regulated vehicle while earning interest. The filing names Kinexys Digital Assets, JPMorgan’s blockchain unit, as the manager. The filing becomes effective on Wednesday, and the bank did not disclose a launch date.

The fund will invest in short-term U.S. Treasury bills and overnight repurchase agreements that are collateralized by U.S. Treasurys or cash, according to the filing. Fund holdings will be represented by tokens on Ethereum while remaining backed by traditional short-term government securities. The filing states JLTXX seeks to comply with the GENIUS Act, the stablecoin-focused federal law enacted in July.

The fund requires a $1 million minimum investment and carries a 0.16% annual management fee after fee waivers. The filing describes the product as a regulated, cash-like vehicle intended to preserve a stable asset value for investors while providing yield through Treasury and repo instruments.

JLTXX follows JPMorgan’s earlier tokenized product, the My OnChain Net Yield Fund (MONY), which launched in December and also runs on Ethereum. The filing comes after a recent pilot in which a tokenized U.S. Treasury fund moved from the U.S. via the XRP Ledger and interbank rails into one of JPMorgan’s Singapore accounts in seconds, demonstrating faster settlement times in that test.

Market data show more than $32.2 billion of real-world assets have been tokenized onchain, excluding stablecoins, covering asset types such as commodities, equities, bonds and real estate. Analysts noted that a 0.16% fee is low for a money market fund that seeks to maintain a stable share price.

Regulatory and institutional observers have raised concerns about tokenization. The International Monetary Fund flagged risks that tokenization can shift exposures from the banking system to shared ledgers and smart contract code, which could complicate interventions during periods of stress. The IMF also pointed to potential legal uncertainty around ownership records and settlement finality. Industry participants have called for clearer market-structure legislation, including proposals like the CLARITY Act.

JPMorgan did not provide details on when JLTXX will begin trading or how the fund will integrate with existing custody and reserve processes for stablecoin issuers. The filing shows the bank is expanding its blockchain-based product offerings while aligning them with emerging regulatory standards.