Key Points
- JP Morgan filed for a second tokenized Treasury fund built on Ethereum.
- Move reflects rising institutional competition in tokenized real-world assets.
JP Morgan Chase filed with the US Securities and Exchange Commission on May 12 to launch a second tokenized money market fund on Ethereum.
The proposed fund would issue digital tokens backed by US Treasuries and overnight repurchase agreements, allowing investors to hold them in digital wallets or use them as on-chain collateral.
Data from rwa.xyz shows tokenized real-world assets have reached about $32 billion in total value.
Other asset managers, including BlackRock, are also expanding tokenized products under the GENIUS Act framework.
The decision to use Ethereum’s public mainnet instead of the bank’s private Kinexys infrastructure signals a shift toward public blockchain settlement for institutional products.
Structure of the JLTXX Tokenized Fund
The new fund, structured under JP Morgan Trust IV as Token Class Shares and named JLTXX, lists US Treasury securities with maturities of 93 days or less as its core holdings.
It maintains at least 99.5% of assets in cash or government securities in line with SEC Rule 2a-7 requirements.
Settlement is designed to occur within minutes, while legal custody remains with a traditional custodian and blockchain records mirror official book-entry accounts.
JLTXX differs from the bank’s earlier MONY tokenized fund by targeting stablecoin issuers seeking reserve assets under the GENIUS Act.
Permissioned wallet addresses manage compliance controls while operating on a public blockchain, and subscriptions may include stablecoins alongside cash.
The product is routed through Kinexys Digital Assets, which previously executed tokenized transactions across multiple blockchains including Solana and the XRP Ledger.
Institutional Adoption and Market Competition
The GENIUS Act, signed in July 2025, restricts stablecoin issuers from offering interest, separating them from yield-bearing instruments such as money market funds.
BlackRock’s BUIDL fund surpassed $500 million on Ethereum after launching in March 2024, contributing to growth in tokenized RWA markets.
By the first quarter of 2026, tokenized RWAs reached $8.6 billion, with about 70% of value concentrated on Ethereum.
Franklin Templeton and other institutions are also pursuing tokenized offerings, increasing competition for institutional deposits.
JP Morgan’s Onyx blockchain, launched in 2020, processes over $1 billion in daily transactions as of 2025 and supports its broader digital asset initiatives.
The earlier MONY fund launched in December 2025 with $100 million in capital, serving as a precursor to the newly filed JLTXX product.
Additional developments, including expansion by traditional brokerage firms into digital assets, indicate continued institutional engagement with blockchain-based financial infrastructure.
JP Morgan’s filing places Ethereum at the center of its latest tokenized fund strategy, highlighting the network’s role in institutional settlement.
