JP Morgan AM Launches Second Tokenised MMF

JP Morgan Asset Management has launched its second tokenised money market fund for US investors, the JPMorgan OnChain Liquidity–Token Money Market Fund (JLTXX).

The new fund is available on the public Ethereum blockchain, and at launch the firm says it is investing $100 million, with additional participation from Anchorage Digital. It invests only in US Treasury securities and overnight repurchase agreements collateralied fully by US Treasury securities and/or cash, allowing, the firm says, investors the opportunity to earn yield while holding their token balances on the blockchain.

The firm adds that JLTXX reinforces its commitment to modernising traditional offerings with blockchain technology. It observes that the tokenised asset landscape has grown significantly in recent years, with approximately $30 billion in traditional assets currently tokenised on public blockchain networks. “While this represents a small fraction of industry assets under management, adoption is accelerating, with AUM in on–chain products nearly tripling since early 2024,” it states.

“Investors are increasingly looking for ways to modernize liquidity management without changing the fundamentals of what they own,” says John Donohue, head of global liquidity at JP Morgan Asset Management. “Money market funds have long served as a core tool for investors seeking liquidity, stability and competitive short-term yield. There is a continued shift toward bringing established financial products onto public blockchain networks and we are excited to bring more options to market for our clients.”