[Bitcoin Now] JPMorgan Applies for Tokenized MMF, Accelerates Blockchain Finance Expansion

The asset management division of JPMorgan Chase is accelerating the expansion of its blockchain-based financial business by pursuing the launch of its second tokenized money market fund (MMF). Recently, major asset management firms such as BlackRock are also preparing similar products, signaling the start of intense competition in the asset tokenization market.

On May 12 (local time), JPMorgan submitted documentation to launch the "JPMorgan OnChain Liquidity-Token Money Market Fund."

This fund invests in U.S. Treasury securities and repurchase agreements (repos). Shares of the fund are issued as digital tokens on the Ethereum blockchain. These tokens represent fractional ownership in the underlying asset portfolio.

The tokens can be stored in digital wallets or transferred between investors. They can also be used as collateral in the virtual asset market. Unlike traditional fund shares, which take a day or two to settle, transactions with these tokens are settled within minutes. The underlying assets continue to be held by existing custodians.

JPMorgan's first tokenized MMF is the "My OnChain Net Yield Fund," which operates on JPMorgan's tokenization platform, Kinexys Digital Assets.

Tokenization refers to the process of converting traditional financial assets such as stocks, bonds, and private loans into blockchain-based digital tokens that represent fractional ownership. According to Bloomberg, tokenization has emerged as one of the fastest-growing sectors on Wall Street, as more financial institutions seek to attract investors familiar with virtual assets.

Other major asset management firms are also joining this trend by preparing tokenized products in compliance with the Genius Act, a regulatory framework for dollar-pegged stablecoins. Recently, BlackRock submitted documents to launch two types of tokenized MMFs targeting investors who hold cash in stablecoins.

According to data provider rwa.xyz, the market capitalization of tokenized assets has increased by more than 400% since early 2025, reaching approximately $32 billion. Although this is still small compared to the trillions of dollars held in mutual funds and exchange-traded funds (ETFs), the industry expects continued rapid growth.