JPMorgan Chase & Co.'s asset management division is intensifying its commitment to blockchain-based finance by filing for a second tokenized money market fund. The New York-based bank submitted paperwork on Tuesday for the JPMorgan OnChain Liquidity-Token Money Market Fund, which will trade under the ticker JLTXX. This fund is designed to issue digital tokens on the Ethereum blockchain, representing shares in a portfolio consisting of United States Treasuries and overnight repurchase agreements collateralized by Treasuries or cash.
Key Features of the New Fund
The tokens issued by the fund can be held in digital wallets, transferred among investors, or utilized as collateral within cryptocurrency markets. One of the most significant advantages is the settlement time: transactions can be completed in minutes, a stark contrast to the conventional one to two days required for traditional fund shares. Meanwhile, the underlying assets will be safeguarded by a conventional custodian.
The product is structured to comply with the Genius Act, the federal regulatory framework for dollar-linked stablecoins that was enacted last year. This alignment ensures that the fund meets the legal standards for stablecoin operations.
Growing Trend of Tokenization
Tokenization, which involves converting traditional financial assets such as stocks, bonds, and private credit into blockchain-based digital tokens that represent fractional ownership, has become one of Wall Street's fastest-growing sectors. Asset managers are increasingly targeting crypto-native investors by launching tokenized products. JPMorgan's latest filing follows the debut of its first tokenized money-market fund, the My OnChain Net Yield Fund (MONY), which operates on the bank's Kinexys Digital Assets platform.
Other major financial institutions are also racing to capitalize on this trend. For instance, BlackRock Inc. recently filed paperwork for two tokenized money market funds aimed at investors who hold cash in stablecoins.
Market Growth and Potential
The market value of tokenized assets has experienced explosive growth, surging more than 400 percent since the beginning of 2025 to approximately US$32 billion, according to data from rwa.xyz. While this figure remains modest compared to the trillions of dollars held in mutual funds and exchange-traded funds, proponents anticipate continued expansion. The ability to settle transactions rapidly and the appeal to a new generation of digital-native investors are driving forces behind this growth.
JPMorgan's deepening involvement in tokenization underscores the broader shift within the financial industry toward integrating blockchain technology into traditional asset management. As regulatory frameworks like the Genius Act provide clearer guidelines, more firms are expected to launch similar products, further accelerating the adoption of tokenized assets.
