JPMorgan Chase is expanding deeper into blockchain finance after filing for a new Ethereum-based tokenized money market fund, following similar efforts recently announced by BlackRock. The move highlights growing institutional interest in tokenized financial products tied to traditional assets such as U.S. Treasuries and repurchase agreements.
The banking giant submitted paperwork for the JPMorgan OnChain Liquidity-Token Money Market Fund, which would trade under the ticker JLTXX. According to the filing, the fund plans to issue blockchain-based digital shares on the Ethereum network while maintaining exposure to traditional fixed-income assets.
The proposed structure would allow investors to hold and transfer tokenized fund shares directly through digital wallets. Unlike traditional money market funds that often require one or two business days for settlement, blockchain-based transactions could settle within minutes, significantly improving efficiency and liquidity.
Although the ownership shares would exist on-chain, the underlying assets themselves would remain under the custody of traditional financial institutions. The portfolio backing the tokenized fund would primarily consist of U.S. Treasury securities and repurchase agreements.
The filing marks JPMorgan’s second tokenized money market initiative and signals the bank’s continued push into digital asset infrastructure. Recently, major Wall Street firms have increasingly explored blockchain-powered financial products as institutional adoption of crypto-related technology accelerates.
Senior Bloomberg ETF analyst Eric Balchunas commented on the development, stating that JPMorgan is gradually moving further into the crypto sector. He also noted that the proposed fund’s fee structure appears relatively competitive, with a reported expense ratio of 16 basis points.
Balchunas added that maintaining a stable net asset value at such pricing levels is difficult within traditional ETF structures, making the offering notable compared to existing money market products.
The filing also arrives shortly after several major firms, including Ripple, Mastercard, Ondo Finance, and JPMorgan, participated in pilot transactions involving tokenized U.S. Treasuries on the XRP Ledger ecosystem.
Meanwhile, BlackRock has also accelerated its own blockchain-based financial initiatives. Last week, the asset management giant reportedly filed with the U.S. Securities and Exchange Commission to launch two tokenized money market funds linked to Treasury-based assets.
One of the proposed products, the BlackRock Select Treasury-Based Liquidity Fund, reportedly manages around $6.1 billion in assets and is also expected to utilize the Ethereum blockchain for tokenization.
The growing competition between traditional financial institutions to tokenize real-world assets reflects a broader shift toward blockchain-powered capital markets. Analysts believe tokenized funds could eventually improve settlement speed, collateral efficiency, liquidity access, and global interoperability across financial systems.
