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 the Ethereum (ETH) blockchain.
It was raised with $100 million of JPMorgan's own funds before raising funds from outside 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 a product line that will give them the same choice as traditional blockchain money market funds,” said John Donoghue, Head of Global Liquidity at J.P. Morgan Asset Management.
Investors can access the tokenized money market fund through JPMorgan's Morgan Money platform. Participation is ensured by the issuance of digital tokens held in investors' cryptocurrency wallets, representing their stake in the fund.
Subscription and redemption can be made in cash or using USDC, a US dollar-backed stablecoin.