JPMorgan Seeks Approval for Second Ethereum-Based Tokenized Treasury Money Market Fund

JPMorgan Asset Management has filed to launch a second tokenized money market fund on Ethereum, extending its effort to offer blockchain-enabled liquidity products to institutional investors. The proposed vehicle, the JPMorgan OnChain Liquidity Token Money Market Fund, is expected to trade under the ticker JLTXX. According to the filing, the fund's objective is to generate current income while preserving liquidity and the stability of principal. The fund appears under JPMorgan Trust IV's J.P. Morgan Money Market Funds prospectus, with Token Class shares dated May 13. JLTXX would invest solely in U.S. Treasury bills, notes and bonds, along with overnight repurchase agreements fully collateralized by U.S. Treasuries or cash. The fund aims to maintain a $1 net asset value and will invest only in U.S. dollar-denominated securities. Blockchain technology would be used to allow investors to submit transaction requests for fund shares. Kinexys Digital Assets, a business unit within JPMorgan Chase Bank, will design, deploy and maintain the blockchain infrastructure. The filing states the tokenization framework will not replace traditional fund recordkeeping: the transfer agent will keep the official ownership record in book-entry form, while token balances linked to investor blockchain addresses are intended to mirror fund shares on a one-for-one basis. In any discrepancy, the official investor register would control. Ethereum is currently the only blockchain available for investor use, though JPMorgan said it expects to add support for other blockchains over time. The structure relies on a permissioned layer on top of public blockchains, requiring investors to transact using approved addresses. The filing follows JPMorgan's launch of the My OnChain Net Yield Fund (MONY), its first tokenized money market fund on Ethereum. Barron's reported MONY was seeded with $100 million from JPMorgan and targeted qualified investors. The new proposal signals a broader push to bring tokenized cash products into mainstream asset management by using Ethereum as a transaction and token-balance layer around a regulated money market fund, rather than as the legal record of ownership.