J.P. Morgan Asset Management has introduced its first tokenised money market fund, expanding its use of blockchain infrastructure for institutional liquidity products.
The fund, called My OnChain Net Yield Fund (MONY), has been issued on the public Ethereum blockchain and is structured as a 506(c) private placement available to qualified investors. Access to MONY is limited to Morgan Money, J.P. Morgan Asset Management’s institutional liquidity management platform. Investors receive blockchain-based tokens directly to their digital wallets after subscribing through the platform. The fund allows subscriptions and redemptions using either cash or stablecoins, with daily dividend reinvestment available.
MONY invests exclusively in short-term US government instruments, including US Treasury securities and repurchase agreements fully backed by Treasuries. The structure mirrors traditional money market funds, while placing ownership records and transfers on-chain. According to J.P. Morgan Asset Management officials, the design is intended to preserve the liquidity and risk profile associated with conventional money market products while introducing settlement and operational features enabled by blockchain technology.
Tokenisation and institutional liquidity management
According to the official press release, J.P. Morgan Asset Management is the largest globally systemically important bank to date to place a tokenised money market fund on a public blockchain. Representatives from the firm stated that the move is part of a growing institutional interest in tokenised financial instruments and their potential role in treasury and collateral management.
Officials from J.P. Morgan Asset Management indicated that integrating tokenised assets into Morgan Money could reduce friction in subscriptions, redemptions and transfers, while supporting peer-to-peer movement of fund interests. They also pointed to increased transparency and the possibility of wider use of tokenised fund units as collateral within digital markets.
The launch follows recent experimentation across the financial sector with asset tokenisation, particularly for cash-like instruments. Institutions have historically used money market funds for short-term liquidity and capital preservation, and tokenised versions are increasingly being explored as demand grows for on-chain representations of traditional assets.
