Seizing the opportunity in stablecoin reserve providers! JPMorgan will launch the second "Tokenized Money Market Fund" on Ethereum

Traditional financial giants embrace blockchain once again! According to application documents exposed on Tuesday, Wall Street investment bank JPMorgan Chase is preparing to launch a new “Tokenized Money Market Fund” on Ethereum, targeting the large asset reserve needs of stablecoin issuers following the implementation of the U.S. GENIUS Act.
The application states that this new product, called the “OnChain Liquidity-Token Money Market Fund” (trading code JLTXX), primarily invests in U.S. Treasury bonds and overnight repurchase agreements backed by U.S. debt or cash.
Technologically, the blockchain technology used by this fund will be managed by JPMorgan’s digital asset division, Kinexys Digital Assets.
JPMorgan also emphasized in the document: “Ethereum is currently the only blockchain network accessible to investors, but we anticipate expanding to other blockchain ecosystems in the future.”
This filing with the U.S. Securities and Exchange Commission (SEC) became effective on May 13, but the official launch date of the fund has not yet been announced.
In fact, JLTXX is JPMorgan’s second tokenized money market fund issued on Ethereum. As early as the end of last year, JPMorgan launched a fund called MONY to test the waters, which was more focused on meeting institutional needs for “on-chain cash management.”
This move also reflects the intensifying competition in the traditional banking industry. Last month, Morgan Stanley also launched a money market fund aimed at stablecoin reserves, though it was not directly operating on the blockchain; in the tokenized fund space, asset management giant Franklin Templeton’s BENJI fund is a formidable competitor not to be overlooked.
The launch of JLTXX is no coincidence but a precise response to regulatory changes in the U.S. According to the passed GENIUS Act last year, compliant stablecoin issuers in the U.S. will be required to hold high-liquidity assets as reserves, including U.S. Treasuries, cash, and insured bank deposits.