JPMorgan’s tokenized dollars are accelerating settlement, collateral use, and liquidity for institutional clients through two linked initiatives: a tokenized money market fund and a deposit token deployed on public blockchain rails. The moves—seed capital of $100 million for the My OnChain Net Yield Fund (MONY) and rollout of JPM Coin on Coinbase’s Base—aim to cut settlement latency and free up capital across trading, lending and repo markets.
MONY converts traditional money market fund shares into blockchain tokens, seeded with $100 million of the bank’s own capital and open to qualified investors with a $1 million minimum. The firm also sets investor-qualification thresholds—individuals with at least $5 million in investments and institutional criteria of $25 million—while keeping the product focused on institutional use. A tokenized money market fund is a conventional money market vehicle whose units are issued as blockchain tokens to enable on-chain transfer and near-instant settlement.
The deposit token, JPMorgan Coin, functions as a dollar-denominated deposit instrument on public rails and supports near-instant value transfer between whitelisted institutional parties. It enables atomic delivery-versus-payment (DvP) and payment-versus-payment (PvP) workflows, removing the need for lengthy pre-funding and shrinking settlement windows from days to seconds. JPM Coin is also being explored as a tool for margin payments, repo settlement and collateral mobility.
Key operational effects are immediate: 24/7 trading and settlement, reduced collateral drag through instant transferability and on-chain transparency, and potential fractionalization that can enhance tradability and liquidity. These changes are designed to optimize capital usage in derivatives, repos and credit lines by enabling real-time valuation and transfer of tokenized collateral.
Market scale, competitors and regulatory context
JPMorgan’s effort sits alongside other large institutions embracing tokenization; a rival tokenized money market fund reported over $2 billion in AUM. Industry estimates cited with these initiatives project tokenized real-world assets (RWAs) growing from roughly $33 billion today to $2.8 trillion by 2034 at a ~60% CAGR, and stablecoin issuance reaching $1.9 trillion by 2030, with monthly crypto-network flows for institutions measured in trillions of dollars.
Technically, the bank leverages Ethereum’s smart-contract capabilities for MONY and uses an internal platform to manage permissions and compliance. The firm emphasizes permissioned transfers to maintain institutional-grade controls on public chains. Regulators are adapting: the evolving landscape and initiatives addressing deposit tokens and asset-tokenization inform how these products are structured to meet custody, KYC/AML and registration expectations.
A short institutional quote encapsulates the argument: “tokenization can fundamentally change the speed and efficiency of transactions,” according to JPMorgan.
Monitor institutional uptake metrics and regulatory clarifications on deposit tokens and crypto collateral—particularly acceptance of major crypto assets as loan collateral and formal guidance on tokenized fund structures—as the next checkpoints for assessing systemic impact.
