JPMorgan launches a $100 million tokenized fund on the Ethereum network

Source: PortaldoBitcoin Original Title: JPMorgan Launches $100 Million Tokenized Fund on Ethereum Network Original Link: One of the world’s largest banks is set to launch a tokenized money market fund on the Ethereum network. Named My OnChain Net Yield Fund (MONY), the vehicle will start with an initial contribution of US$ 100 million and will be open to qualified external investors, marking another step for the institution in integrating traditional finance with blockchain.

The private fund will be supported by the bank’s tokenization platform, Kinexys Digital Assets. Investors with at least US$ 5 million in financial assets or institutions with a minimum investment of US$ 25 million will be eligible to participate. The minimum contribution to MONY will be US$ 1 million.

“There is enormous client interest in tokenization,” said JPMorgan Asset Management’s global liquidity chief.

The initiative comes amid the advancement of tokenization on Wall Street following the approval of regulatory frameworks for tokenized dollars, such as stablecoins. This regulatory environment has spurred efforts to bring assets like stocks, bonds, funds, and real-world assets onto the blockchain.

The MONY can be subscribed through JPMorgan’s money market investment portal. In return, investors will receive digital tokens directly into their cryptocurrency wallets.

The fund will maintain a portfolio of short-term debt securities, paying interest and accumulating dividends daily. Shares can be subscribed to and redeemed in cash or stablecoin.

Data shows that money market funds total around US$ 7.7 trillion in assets, while the total value of stablecoins has already surpassed US$ 300 billion. In this context, tokenized funds gain appeal by offering yields with fully on-chain assets, as well as reducing costs and settlement times for managers.

This move follows a trend led by major asset managers and reinforces the competition among traditional banks for space in the digital asset ecosystem.