The bank’s asset management arm pivots from private ledgers to public infrastructure, utilizing the Kinexys Digital Assets platform to automate daily yield payouts.
JPMorgan Chase officially deployed its first tokenized money market fund on the Ethereum blockchain. The bank seeded the product, dubbed the “My OnChain Net Yield Fund” (MONY), with $100 million in initial capital. The move represents a definitive shift in strategy for the world’s largest bank as it moves from closed, permissioned ledgers to the open liquidity of public networks.
According to a press release from J.P. Morgan Asset Management, the fund utilizes the bank’s Kinexys Digital Assets platform to handle operations. The structure allows qualified institutional investors to subscribe and redeem shares using cash or stablecoins. Ownership is recorded directly on the Ethereum mainnet.
Automating the Financial Back Office
The MONY fund introduces programmable features that legacy systems cannot match. Smart contract architecture automates daily dividend reinvestment and settlement. These features effectively eliminate the T+2 latency standard prevalent in traditional finance.
George Gatch, CEO of J.P. Morgan Asset Management, stated in the announcement that the move aligns with the firm’s broader modernization strategy.
“Active management and innovation are at the heart of how we deliver new solutions for investors navigating today’s financial landscape,” Gatch said. “By harnessing technology alongside our deep expertise, we’re able to provide clients with advanced, innovative, and cost-effective capabilities.”
The Public Chain Pivot
Industry observers view the decision to launch on Ethereum as an endorsement of the “public rail” thesis. JPMorgan previously concentrated its blockchain efforts on its private Kinexys network (formerly Onyx) for internal repo and cross-border settlements.
John Donohue, Head of Global Liquidity at J.P. Morgan Asset Management, noted the operational advantages of the new architecture. He stated that tokenization could fundamentally change the speed and efficiency of transactions.
The RWA Acceleration
The deployment validates forecasts regarding the Real-World Asset (RWA) sector. Reports from 21.co and Citi project the market for tokenized assets could reach $10 trillion by 2030. Competitors including BlackRock and Franklin Templeton have already established products on public chains. JPMorgan’s entry confirms that high-value collateral is migrating to transparent, global ledgers.
Chain Street’s Take
JPMorgan spent years building an intranet with Onyx. The launch of MONY proves they realized the market demands the internet. Private ledgers cannot compete with the global liquidity of Ethereum. The move effectively admits that T+2 settlement cycles are obsolete. Banks have stopped experimenting with blockchain. They are re-platforming the entire financial system onto it. The “My OnChain Net Yield” ticker isn’t just a product name. It is a surrender to the efficiency of the public ledger.
