JPMorgan Files Tokenized Money Market Fund for Stablecoin Reserves

JPMorgan has filed plans to launch a tokenized money market fund on the Ethereum blockchain, marking another major step in the bank’s digital asset strategy. The proposed fund, called the OnChain Liquidity-Token Money Market Fund (JLTXX), is designed to help stablecoin issuers manage reserve assets in a regulated investment vehicle while earning interest.

According to a filing submitted to the US Securities and Exchange Commission on May 13, the fund will invest in short-term US Treasury bills and overnight repurchase agreements backed by Treasurys or cash.

JLTXX Aims to Support Stablecoin Reserve Management

JLTXX is being structured to align with requirements under the GENIUS Act, the stablecoin regulation law signed in July. The fund will require a minimum investment of $1 million and will charge an annual fee of 0.16% after waivers.

JPMorgan’s blockchain division, Kinexys Digital Assets, will oversee the fund. While the filing becomes effective this week, the bank has not confirmed an official launch date.

Tokenization Growth Gains Momentum on Wall Street

The move comes as large financial institutions increase their focus on blockchain-based tokenization. Tokenized real-world assets excluding stablecoins now exceed $32 billion globally, covering sectors such as bonds, commodities, stocks, and real estate.

Industry and Regulatory Concerns Remain

Despite growing adoption, regulators continue to highlight risks around tokenized markets, including legal uncertainty, settlement challenges, and concerns over financial stability during market stress.