J.P. Morgan Asset Management has launched its first tokenized money market fund, called the My OnChain Net Yield Fund (MONY). This fund is now available on the Ethereum blockchain.
The fund, powered by Kinexys Digital Assets, allows qualified investors to earn U.S. dollar returns by investing through Morgan Money®, a platform for managing investments and liquidity. Morgan Money is the first platform that combines both traditional and blockchain-based assets, giving investors access to a full range of money market products.
J.P. Morgan is the largest global bank to launch a money market fund on a public blockchain. MONY invests in U.S. Treasury securities and related bonds, providing a safe as well as stable return. Investors can utilize cash or stablecoins to buy into the fund and earn daily reinvested dividends. The blockchain-based setup ensures for increased transparency and the ability to transfer tokens directly between users.
This launch shows how the financial industry is moving towards using blockchain technology to create new ways of investing and managing assets, with tokenized money market funds offering advantages like better transparency and ease of transfer.
Executive Statement
According to George Gatch, CEO of J.P. Morgan Asset Management, active management and innovation are at the heart of how they deliver new solutions for investors navigating today's financial landscape. By harnessing technology alongside their deep expertise in active management, they are able to offer clients with advanced, innovative, as well as cost-effective capabilities that help them achieve their investment goals.
According to John Donohue, Head of Global Liquidity at J.P. Morgan Asset Management, they are excited to be a first mover with the launch of MONY, and they expect other GSIB banks to follow their lead in providing clients with greater optionality in how they invest in money market funds. With Morgan Money, tokenization can fundamentally change the speed and efficiency of transactions, adding new capabilities to traditional products. This marks a significant step forward in how assets will be traded in the future, and they are excited about the opportunities this creates for their clients and for the whole industry.
