JPMorgan (JPM) Launches Tokenized Money Fund for Investors

JPMorgan Chase & Co. (NYSE:JPM) is included among the 12 Best Dogs of the Dow to Invest in.

According to a report by the Wall Street Journal, JPMorgan Chase & Co. (NYSE:JPM) is stepping into a new corner of finance by bringing blockchain technology to a familiar product: the money-market fund. The bank’s $4 trillion asset-management business is launching its first tokenized money fund. Instead of traditional fund shares, investors will hold digital tokens that represent ownership in the fund.

JPMorgan Chase & Co. (NYSE:JPM) plans to seed the fund with $100 million of its own capital. The product is called the OnChain Net Yield Fund, or MONY. It is available only to qualified investors. That includes individuals with at least $5 million in investable assets and institutions with a minimum of $25 million. The minimum investment is set at $1 million.

John Donohue, head of global liquidity at J.P. Morgan Asset Management, made the following comment:

“There is a massive amount of interest from clients around tokenization. And we expect to be a leader in this space and work with clients to make sure that we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain.”

All MONY transactions will be recorded on the Ethereum blockchain. Investors can access the fund through JPMorgan’s Morgan Money platform, which is used for money-market investing. After subscribing, investors receive digital tokens that are stored in their crypto wallets.

JPMorgan Chase & Co. (NYSE:JPM) is one of the world’s largest financial institutions, with operations spanning banking, investing, payments, and asset management.

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