JPMorgan files to launch a tokenized money market fund, allowing stablecoin issuers to invest reserves and earn yield

On May 13, CoinTelegraph reported that JPMorgan has filed documents with the U.S. Securities and Exchange Commission (SEC) to launch on Ethereum a tokenized fund called the “On-Chain Liquidity Token Money Market Fund” (JLTXX). It would allow stablecoin issuers to deposit their stablecoin reserves into regulated cash-like instruments while earning interest.

JLTXX Fund Core Terms and Design

According to an SEC filing (reported by CoinTelegraph), JLTXX’s main terms are as follows:

Investment target: U.S. Treasuries and overnight repurchase agreements collateralized by U.S. Treasuries or cash

Minimum investment amount: $1 million

Annual fee: 0.16% (after waiving exempt fees)

Manager: Kinexys Digital Assets, JPMorgan’s blockchain division

Regulatory basis: compliant with the “GENIUS Act” (stablecoin-specific legislation signed in July 2026)

Bloomberg analyst Erik Balchunas said JLTXX’s 0.16% fee is a “meaningfully low fee rate” for a money market fund with stable asset value.

CoinTelegraph reported that the JLTXX filing came about three weeks after Morgan Stanley launched a stablecoin reserve investment contract in April 2026. The latter allows stablecoin issuers to deposit reserves into Morgan Stanley’s money market fund and earn interest.

JPMorgan’s Blockchain Product Milestones

According to CoinTelegraph, JLTXX is JPMorgan’s second major product in the tokenization space:

MONY (My OnChain Net Yield Fund): JPMorgan’s first tokenized product, launched in December 2025. It also runs on Ethereum, holding short-term debt securities to provide returns higher than bank deposit rates, with interest and dividends accruing daily

XRP Ledger cross-border pilot: Last week, JPMorgan participated in a pilot transaction in which the first tokenized U.S. Treasuries fund was transferred from the United States to JPMorgan’s bank account in Singapore within seconds via the XRP Ledger and interbank channels

RWA Tokenization Market Background and IMF Regulatory Warning

According to RWA.xyz data, currently more than $32 billion in real-world assets (besides stablecoins) have been tokenized on-chain, covering major asset classes such as commodities, equities, bonds, and real estate.

According to CoinTelegraph, in an April 2026 report, the International Monetary Fund (IMF) stated that tokenization shifts risk from the banking system to shared ledger and smart contract code, making regulatory intervention more difficult during “stress events.” The IMF also warned that, without clear legal certainty regarding ownership records and settlement finality, the tokenized market could face “fragmented, marginal” risk. Industry figures including “Dragons’ Den” investor Kevin O’Leary said legislation for crypto market structure (such as the “CLARITY Act”) is needed to address the above issues.

FAQ

What are the main functions and target users of JPMorgan’s JLTXX?

According to the SEC filing (reported by CoinTelegraph), JLTXX allows stablecoin issuers to deposit their stablecoin reserves into regulated cash-like instruments while earning interest. The fund invests in U.S. Treasuries and overnight repurchase agreements, with a minimum investment amount of $1 million.

Which department manages JLTXX, and what is the fee rate?

According to the SEC filing, JLTXX will be managed by Kinexys Digital Assets, JPMorgan’s blockchain division. The annual fee is 0.16% (after waiving exempt fees). Bloomberg analyst Erik Balchunas said this fee rate is relatively low for a money market fund.

What tokenized products did JPMorgan have previously?

According to CoinTelegraph, JPMorgan’s first tokenized product is MONY (My OnChain Net Yield Fund), launched on Ethereum in December 2025. It holds short-term debt securities, with interest and dividends accruing daily. Last week, JPMorgan also completed a pilot transaction for the cross-border transfer of a tokenized U.S. Treasuries fund via the XRP Ledger.