JPMorgan Set to Launch On-chain Money Market Fund for Stablecoin Issuers

JPMorgan Chase has moved to establish a tokenized money market fund using Ethereum, offering stablecoin issuers a compliant way to hold reserve assets while earning returns.

Details from a Tuesday filing with the U.S. Securities and Exchange Commission show the proposed fund, named the OnChain Liquidity-Token Money Market Fund (JLTXX), would invest in U.S. Treasury bills as well as short-term repurchase agreements backed by Treasurys or cash.

In addition, the structure is designed to align with the GENIUS Act, a law focused on stablecoins that was signed into law in July. Under the terms outlined, participation would require a minimum investment of $1 million, with a 0.16% annual fee applied after waivers.

If approved, the product will be overseen by JPMorgan’s blockchain division, Kinexys Digital Assets. The filing is set to go into effect on Wednesday, while the official launch timeline has not yet been disclosed.

Source: JPMorgan (SEC Filing)