In another major move of traditional financial markets onto the blockchain, JPMorgan Chase is launching its first tokenized money-market fund on the Ethereum blockchain, seeding the private vehicle with $100 million of its own capital. The new vehicle, called My OnChain Net Yield Fund, or MONY, is being introduced by the bank’s $4 trillion asset-management arm.
Like traditional money-market funds, MONY holds baskets of short-term debt securities and is designed to offer yields typically higher than bank deposits, with interest paid and dividends accrued daily.
“There is a massive amount of interest from clients around tokenization,” JPMorgan Asset Management Head of Liquidity told the Wall Street Journal. “We expect to be a leader in this space and work with clients to make sure that we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain.”
The ETH machine that won’t stop buying
Meanwhile, the world’s largest Ethereum treasury firm, BitMine Immersion Technologies, bought another US$321.1 million worth of Ethereum (ETH) last week as part of its long-term strategy to accumulate 5% of the asset’s total supply. The firm now holds asset about $12.5 billion worth of ETH at current prices and its buying spree is not stopping. The firm’s chairman, billionaire investor Tom Lee, is calling Ethereum “the future of finance.” In a post on X, the ETH maximalist cited JPMorgan’s new MONY fund as yet more clear evidence of this.
Reshaping finance
As we reported last week, the Ethereum blockchain has processed nearly US$6 trillion in crypto stablecoin volume this quarter, a volume surge that “is reflective of real economic activity as traditional financial markets are rapidly moving onto the blockchain”. For comparison, Visa processes about US$8 trillion in transactions a year – a figure that Ethereum stablecoins may hit this quarter. It is clear that blockchain is reshaping finance and is steadily gaining significant market share from traditional financial markets and payment rails.