JPMorgan Launches Tokenized Fund Again! JLTXX Locks in Stablecoin Reserves, Documents Reveal Operating Mechanism

JPMorgan applies to launch the Ethereum tokenized fund “JLTXX,” focusing on the reserve-demand needs of stablecoin issuers. It uses a whitelist model and integrates USDC exchange functionality, highlighting Wall Street’s accelerated scale-up in the tokenized assets market, which has reached $32.2 billion.

JPMorgan applies for JLTXX on-chain fund, targeting stablecoin reserve needs

Financial giant JPMorgan has filed an application with the U.S. Securities and Exchange Commission (SEC), planning to launch a brand-new tokenized U.S. Treasury bill money market fund on Ethereum. The fund is called the “JPMorgan On-Chain Liquidity Token Money Market Fund,” and its trading code is JLTXX.

This is JPMorgan’s second tokenized money market fund on Ethereum. As early as the end of 2025, JPMorgan launched the MONY Fund to meet institutional investors’ on-chain cash management needs. Meanwhile, the new JLTXX has a more clearly defined target group and is primarily designed to meet reserve-funding needs of stablecoin issuers.

The U.S. stablecoin legislation known as the “Genius Act,” the GENIUS Act, requires stablecoin issuers to hold highly liquid qualifying reserve assets, and JPMorgan’s JLTXX will invest 99.5% or more of its assets in short-term U.S. Treasury bills, bonds, and overnight repurchase agreements backed by U.S. Treasury debt or cash.

The fund’s underlying blockchain infrastructure is operated by Kinexys Digital Assets, JPMorgan’s digital assets division. At present, Ethereum is the only network used by the fund, and JPMorgan also expects to expand the service to other blockchains in the future.

Image source: SEC documents JPMorgan applies for JLTXX on-chain fund, targeting stablecoin reserve needs

JPMorgan JLTXX operating mechanism overview

In the documents submitted to the SEC, JPMorgan details the operating mechanism of JLTXX:

Whitelist, on-chain/off-chain equity record recognition

JLTXX adopts a permissioned model for its use of blockchain, allowing token minting, burning, and transfers only through approved whitelisted addresses. The token balance on a blockchain address will maintain a 1:1 correspondence with the number of fund shares the investor actually holds.

JLTXX supports peer-to-peer transfers among whitelisted investors via smart contracts, providing the possibility of over-the-counter liquidity for institutional clients.

Although blockchain technology is introduced, the official equity records of the JLTXX fund are still maintained off-chain in a bookkeeping format by traditional transfer agents.** When there is a discrepancy between on-chain data and official records, the off-chain official records will prevail.**

Integrating USDC to USD service

JPMorgan has integrated Circle’s USDC service. When investors subscribe for or redeem the fund, they can convert USDC and USD via third-party software.

In addition, redemption can be completed by transferring the tokens to a designated burn address, and the system will automatically transfer the corresponding funds to the bank account linked to the investor.

JLTXX is mainly designed for institutional big players, with an initial minimum investment threshold of 1,000,000 USD. After deducting relevant discounts, the net expense ratio is 0.16%. The prospectus also explicitly clarifies that neither the fund nor the tokens themselves are stablecoins.

However, because JLTXX’s primary customer base is stablecoin issuers, JPMorgan also issued a risk warning stating that if a stablecoin in the market triggers a run, the issuer may be forced to redeem fund shares in large amounts and at high speed, which could lead to the fund facing liquidity depletion and threaten the stability of the net asset value of $1 per share.

Wall Street giants accelerate entry, tokenized market breaks through $3.2 billion

Competition in the tokenized asset market is heating up. Major financial institutions on Wall Street are accelerating the transfer of traditional assets onto the blockchain.

A recent application was submitted by BlackRock, the world’s largest asset manager, and it is expected to launch a new tokenized U.S. Treasury reserve investment tool, tokenizing an existing money market fund share with a size of 7.0 billion USD.

• Related report: Tokenized market cap breaks through $30 billion! BlackRock applies for 2 tokenized funds, accelerating efforts to capture on-chain finance

Last month, Morgan Stanley launched a money market fund designed for stablecoin reserve needs, but the product did not use blockchain technology. Franklin Templeton has long launched a tokenized money market fund called BENJI, and is gradually tokenizing its other funds as well.

• Related report: Franklin tokenization platform lands on BNB Chain! BENJI accrues interest per second, aiming to capture the $30 trillion market

As institutional investors actively seek yield channels for on-chain cash, the tokenized real-world assets market is seeing rapid growth.

Data from RWA.xyz shows that over the past year, the tokenized real-world assets market has grown by more than 200%. As of today (5/13) at the time of writing, the overall market size has reached $32.2 billion. Among them, tokenized U.S. Treasury bill products are growing the fastest, accounting for $15.9 billion and taking the lead in market share.

Image source: rwa.xyz The tokenized asset market size has reached $32.2 billion, with tokenized U.S. Treasury products dominating the market