JPMorgan filed with the U.S. Securities and Exchange Commission on May 12 to launch a second tokenized money market fund on Ethereum, this one aimed squarely at stablecoin issuers looking for a regulated place to park their reserves. The “OnChain Liquidity-Token Money Market Fund,” trading under the ticker JLTXX, will invest in short-term U.S. Treasuries and overnight repo agreements collateralized by Treasuries or cash. The filing becomes effective Wednesday, May 13, although JPMorgan did not disclose a launch date. JLTXX is engineered to qualify as an eligible reserve asset under the GENIUS Act, the federal stablecoin law signed in July 2025 that requires issuers to back their tokens one-to-one with cash or low-risk securities.
A tokenized money market fund is a regulated mutual fund whose ownership shares are recorded as tokens on a blockchain, allowing holders to transfer them between approved wallets with near-instant settlement.
Key takeaways
- JPMorgan filed for JLTXX on May 12, 2026, with the filing effective May 13. The fund runs on Ethereum and is operated by Kinexys Digital Assets, JPMorgan’s blockchain unit.
- Minimum investment is $1 million and the net expense ratio is capped at 0.16% through June 30, 2028, low for an actively managed money market fund.
- JLTXX is designed to serve as a compliant reserve asset for stablecoin issuers under the GENIUS Act, holding U.S. Treasury bills with maturities of 93 days or less plus overnight repos.
- The filing arrives weeks after Morgan Stanley’s Stablecoin Reserves Portfolio and lands JPMorgan in a tokenization race that already includes BlackRock’s BUIDL and Franklin Templeton’s BENJI.
Published: May 13, 2026 09:30 UTC
Why JPMorgan is filing now
JPMorgan’s second on-chain fund is a direct response to stablecoin issuers shopping for compliant places to hold reserves. The GENIUS Act, signed in July 2025, established the first federal framework for dollar-pegged stablecoins and forced issuers to back their tokens with cash or short-duration government securities, subject to anti-money-laundering and sanctions rules. That created roughly $250 billion in stablecoin reserves looking for yield-bearing homes that satisfy regulators.
JLTXX is the bank’s bid to capture that flow. It invests only in U.S. Treasury bills with maturities of 93 days or less and overnight repurchase agreements fully collateralized by Treasuries or cash, according to the SEC filing. The token balances live on Ethereum and correspond one-to-one with shares on the fund’s official investor register, giving issuers a programmable reserve they can transfer in seconds rather than days.
The fund is JPMorgan’s second tokenized product. Its first, the My OnChain Net Yield Fund (MONY), launched in December 2025 on Ethereum and holds short-term debt designed to outperform bank deposit rates. Bloomberg ETF analyst Eric Balchunas called the 0.16% expense ratio “a big deal” for a stable-value product.
What it means for stablecoin issuers and Wall Street
The launch tightens the race for stablecoin reserve mandates. Morgan Stanley rolled out its Stablecoin Reserves Portfolio in April. BlackRock filed last week for two tokenized money market funds, BSTBL and BRSRV, also on Ethereum and also aimed at stablecoin issuers. Franklin Templeton’s BENJI fund has been operating on multiple chains, including Avalanche and Canton, for more than a year.
For issuers such as Circle, Paxos, and the roster of newcomers preparing to launch dollar tokens, the practical upshot is a competitive market for reserve management. Lower fees, faster settlement, and programmable redemption all become table stakes. JLTXX’s 0.16% cap undercuts most traditional institutional money market funds, which typically charge 0.18% to 0.25%, and matches BUIDL’s headline fee on BlackRock’s tokenized cash fund.
The tokenization market has expanded rapidly. Real-world assets onchain, excluding stablecoins, now total $32.2 billion, according to RWA.xyz, spanning Treasuries, private credit, commodities, and equities. Tokenized U.S. Treasury products alone have grown past $7 billion in assets, led by BUIDL, Ondo’s OUSG, and Franklin’s BENJI.
JPMorgan shares closed up 1.63% at $304.88 on May 12, the day the filing went public.
How JLTXX actually works on chain
JLTXX will run on a permissioned layer built atop public Ethereum by Kinexys Digital Assets, JPMorgan’s blockchain unit formerly known as Onyx. Only approved investors can hold tokens, submit subscription orders, or initiate redemptions. The filing lists Ethereum as the only currently supported network but leaves room to expand.
The filing flags blockchain technology risk as a principal disclosure, calling it “a relatively new and untested technology” with potential for undiscovered flaws, network outages, and regulatory shifts. That language is now standard in tokenized fund prospectuses but signals JPMorgan is still treating on-chain settlement as an experimental layer.
The regulatory backdrop
JLTXX lands in a regulatory window that has finally turned constructive for tokenization. The CLARITY Act, which the Senate Banking Committee is scheduled to mark up on May 14, would extend that clarity to broader digital asset market structure. SEC Chairman Paul Atkins has used recent speeches to outline a framework for on-chain trading, custody, and tokenized vaults, signaling agency openness to products like JLTXX.
With JLTXX, BUIDL, BSTBL, BRSRV, and the Morgan Stanley portfolio now competing for the same business, stablecoin operators will pick the fund that combines the lowest fee, the fastest redemption window, and the cleanest legal opinion. JPMorgan’s name and balance sheet give JLTXX a strong opening pitch.
FAQ
What is JPMorgan’s JLTXX fund?
JLTXX is the JPMorgan OnChain Liquidity-Token Money Market Fund, filed with the SEC on May 12, 2026, and effective May 13. It invests in short-term U.S. Treasuries and overnight repos, runs on Ethereum through JPMorgan’s Kinexys Digital Assets platform, and is built for stablecoin issuers seeking a compliant reserve asset under the GENIUS Act.
How does JLTXX compare to BlackRock’s BUIDL?
Both funds tokenize money market shares on Ethereum and target institutional reserve buyers, including stablecoin issuers. JLTXX charges 0.16% versus BUIDL’s 0.20% headline fee, has a $1 million minimum, and is operated by JPMorgan’s Kinexys unit. BlackRock’s BUIDL launched in 2024 and currently leads the tokenized Treasury market by assets.
Why does the GENIUS Act drive demand for tokenized money market funds?
The GENIUS Act, signed in July 2025, requires U.S. stablecoin issuers to hold one-to-one reserves in cash or low-risk securities like short-term Treasuries. Tokenized money market funds qualify as eligible reserves and pay yield, so issuers can earn interest on float while staying compliant. That has triggered a rush of bank-issued products designed specifically for that mandate.
