Key Takeaways
- JPMorgan has filed for a second tokenized money market fund on Ethereum.
- The proposed JLTXX fund would tokenize Treasury-backed assets on Ethereum.
- Some analysts and crypto investors view the move as bullish for Ethereum’s long-term adoption.
JPMorgan Chase is expanding its push into blockchain-based finance, planning to launch a second tokenized money market fund on Ethereum.
The move has fueled debate over whether it could strengthen Ethereum’s long-term investment case, as bullish analysts predict higher prices despite muted moves in recent weeks.
JPMorgan’s Second Push
The Wall Street bank’s asset management arm filed paperwork on Tuesday for the JPMorgan OnChain Liquidity-Token Money Market Fund, or JLTXX, according to a Bloomberg report.
The proposed product will issue digital tokens on the Ethereum blockchain that represent investor shares in a portfolio primarily made up of US Treasuries and repurchase agreements.
Under the proposed structure, investors can hold JLTXX fund shares in digital wallets, transfer them between counterparties, or potentially use them as collateral in crypto markets.
According to Bloomberg, the fund is designed to comply with the GENIUS Act, the US regulatory framework governing dollar-pegged stablecoins, which was signed into law last year.
The product would invest in short-term Treasury assets and overnight repurchase agreements backed by Treasuries or cash.
The move marks JPMorgan’s second tokenized money market fund on Ethereum following the launch of its My OnChain Net Yield Fund (MONY), which debuted in late 2025 through the bank’s Kinexys Digital Assets platform.
The filing also follows a broader wave of institutional tokenization activity.
Earlier this month, BlackRock filed for tokenized money market products tied to stablecoin reserve assets.
JPMorgan Backing Tokenization, Ethereum
In comments published in December, Paul Przybylski, managing director and global head of product for digital and tokenized assets at JPMorgan, said blockchain-based finance could reshape how money market funds are issued and serviced.
“While blockchain powers tokenization, the investor experience remains familiar, with added benefits enabled by digital asset technology,” Przybylski said in a blog post.
He added that tokenized money market funds could improve operational efficiency by allowing faster settlement and more flexible collateral usage.
JPMorgan also explained how tokenized funds differ from speculative crypto because they represent ownership claims on traditional financial instruments.
The bank has highlighted several potential advantages for institutional investors, including faster settlement times and enhanced transparency.
JPMorgan’s Blockchain Journey
JPMorgan has spent years building blockchain infrastructure despite CEO Jamie Dimon’s historically skeptical comments about Bitcoin.
In 2017, Dimon claimed to fire any JPMorgan trader who traded Bitcoin, calling the asset a “fraud” and a “pet rock.”
However, the bank went on to become one the first major US financial institutions to actively develop blockchain settlement systems for institutional finance.
In 2019, JPMorgan launched JPM Coin, a blockchain-based payment token. The initiative later evolved into Kinexys, the bank’s digital asset and tokenization platform.
Over time, JPMorgan broadened its blockchain activity into tokenized collateral, repo transactions, and cross-border settlements.
The firm has also participated in multiple tokenization pilot programs involving central banks, asset managers, and payment companies.
Last month, Ondo Finance, Ripple, Mastercard, and JPMorgan announced a tokenized Treasury settlement pilot completed on the XRP Ledger in under five seconds.
Ethereum, however, has emerged as the dominant network for tokenized financial products.
Many of the largest tokenized Treasury and money market products — including BlackRock’s BUIDL fund and JPMorgan’s tokenized offerings — have either launched on Ethereum or Ethereum-compatible infrastructure.
JPMorgan Bullish for Ethereum?
The latest JPMorgan filing prompted bullish reactions from some crypto investors and analysts.
Crypto influencer Borovik wrote on X that JPMorgan and BlackRock launching tokenized funds on Ethereum represented “the most bullish news for Ethereum.”
Several analysts pointed out that multiple major tokenization announcements have occurred within weeks of each other.
Proponents argue these developments strengthen Ethereum’s position as the preferred settlement layer for institutions, potentially increasing long-term network usage through transaction activity.
Bitmine Chairman Tom Lee, who has predicted Ethereum will reach $62,000, said that tokenization will play a major part of its surge.
“Elon Musk said something pretty profound recently,” Lee said.
“This future system won’t use dollars as currency, just mass and energy.”
Adding: “Networks that host a large share of tokenized activities may capture a meaningful portion of economic value.”
Why Ethereum Price Has Not Reacted Strongly
Despite the institutional momentum, Ethereum’s price has remained relatively subdued in recent weeks, with macroeconomic conditions continuing to dominate broader crypto market sentiment.
At the time of reporting, Ethereum was trading at around $2,303, up just over 5% in the last month.
However, it continues to trade well below its August 2025 high of $4,953.
Some analysts suggested that tokenization is still largely aimed at approved institutions, rather than retail-driven crypto, leading to subdued prices.
Others note that the growth of tokenized funds may take years to materially impact Ethereum network economics.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
