American banking giant JPMorgan has unveiled its first tokenized money market fund. Launched by JPMorgan Asset Management, which manages approximately $4 trillion in assets, the fund will operate on blockchain. Ethereum (ETH).
It was formed from JPMorgan’s own funds in the amount of $100 million before attracting funds from external investors, who will be able to access the fund on December 16.
The product, known as My OnChain Net Yield Fund, is a private fund built on the bank’s Kinexys Digital Assets digital asset tokenization platform. It is open to qualified investors, including individuals with at least $5 million in investable assets and institutional investors with at least $25 million in assets. The minimum investment amount is $1 million.
“Clients are showing tremendous interest in tokenization… We expect to be a leader in this space and work with clients to provide them with a product line that will give them the same choice as traditional blockchain money market funds,” said John Donoghue, head of global liquidity at JP Morgan Asset Management.
Investors can access the tokenized money market fund through JPMorgan’s Morgan Money platform. Participation is facilitated by the issuance of digital tokens, which are stored in investors’ cryptocurrency wallets and represent their stake in the fund.
Subscription and redemption can be made either in cash or using the USDC stablecoin, which is backed by the US dollar.