Ethereum Lands JPMorgan’s New Tokenized Money Market Fund

JPMorgan is launching a tokenized money market fund on Ethereum, marking another step by a major Wall Street institution into public-blockchain-based fund infrastructure. The new JPMorgan OnChain Liquidity-Token Money Market Fund will offer Token Class shares under the ticker JLTXX, according to a registration filing for JPMorgan Trust IV.

The filing positions the product as a government money market fund seeking current income while maintaining liquidity and stability of principal. Its Token Class carries a 0.16% net expense ratio after fee waivers and reimbursements, with gross annual operating expenses listed at 0.71%. Those waivers are scheduled to remain in effect through June 30, 2028, unless renewed or revised.

Bloomberg ETF analyst Eric Balchunas framed the fee structure as a notable part of the launch. “JPMorgan filed for a tokenized money market fund,” he wrote on X. “Big deal bc JPM inching further into crypto and big deal bc fee is pretty low 16bps for a stable NAV (imposs to do in ETF). Cheaper than most money funds altho Vanguard’s is like 11bps.”

JPMorgan Taps Ethereum For Tokenized Treasury Fund

The fund’s strategy is conservative by design. Under normal conditions, it will invest exclusively in US Treasury bills, bonds and notes, along with overnight repurchase agreements fully collateralized by Treasury securities and/or cash. JPMorgan says the fund will seek to maintain a $1.00 NAV, buy only Treasury securities with remaining maturities of 93 days or less, keep dollar-weighted average maturity at 60 days or less, and invest only in US dollar-denominated securities.

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The crypto relevance sits less in the portfolio and more in the rail. The filing says the fund will use blockchain technology to let investors submit transaction instructions for fund shares, while the official record of ownership remains the transfer agent’s traditional book-entry register. Token balances attributed to an investor’s blockchain address are intended to correspond one-for-one with fund shares, but JPMorgan makes clear that the Investor Register, not the blockchain balance, is determinative for legal ownership.

That structure reflects the institutional compromise now forming around tokenization: public-chain connectivity, but within controlled market infrastructure. JPMorgan says the blockchain system is designed, deployed and maintained by Kinexys Digital Assets, a business unit within JPMorgan Chase Bank. The system runs as a permissioned framework on top of public blockchains, requiring approved wallet addresses and allow-listing before investors can purchase, redeem or transfer token balances.

Ethereum is currently the only blockchain available for investors, though the filing says expansion to other blockchains is anticipated: “The Ethereum blockchain, a public blockchain network, is currently the only available blockchain for use by investors, although expansion to other blockchains is anticipated in the future.”

That detail drew attention from CEO and co-founder of Etherealize Vivek Raman who wrote via X: “Five months after MONY, JP Morgan is launching a second tokenized money market fund — on the biggest, most institutional public blockchain: Ethereum. Blackrock and JPM issuing on Ethereum in the same week…”

BlackRock is preparing two tokenized money-market funds aimed at investors holding cash in stablecoins, including a digital share class tied to the roughly $6.1 billion BlackRock Select Treasury Based Liquidity Fund. After the success of BUIDL, those tokenized shares are also set to run on Ethereum alongside traditional share classes, reinforcing the chain’s role as the preferred public settlement venue for a growing set of institutional cash-management products.

At press time, Ethereum traded at $2,303.