- JPMorgan’s JLTXX fund will use Ethereum for tokenized treasury and liquidity transactions within a permissioned system.
- The proposed fund aims to meet GENIUS Act reserve standards for stablecoin issuers using U.S. Treasury assets.
- JPMorgan continues expanding tokenized finance infrastructure through Kinexys and institutional blockchain settlement tools.
JPMorgan has filed to launch the JPMorgan OnChain Liquidity-Token Money Market Fund, or JLTXX, on Ethereum, expanding the bank’s tokenized finance strategy as regulated stablecoin markets continue developing in the United States. The proposed fund would invest only in U.S. Treasurys and fully collateralized overnight repurchase agreements, while also aiming to satisfy reserve asset requirements under the GENIUS Act.
JLTXX Expands JPMorgan’s On-Chain Strategy
According to the SEC filing, JLTXX will operate under JPMorgan Trust IV and maintain a stable $1 net asset value. The fund plans to hold short-term U.S. Treasury bills, notes, bonds, and overnight repurchase agreements backed by Treasurys or cash.
The filing shows the bank intends to use Ethereum as the transaction layer for tokenized fund balances. However, JPMorgan’s transfer agent will continue maintaining the official ownership register through traditional book-entry records.
Kinexys Digital Assets, a division within JPMorgan Chase Bank, will manage the blockchain infrastructure supporting the fund. Investors will use approved wallet addresses within a permissioned framework layered on Ethereum.
The structure allows token balances to move between approved participants without changing the traditional legal ownership process. JPMorgan said blockchain balances should match investor share ownership one-for-one.
Notably, the filing stated Ethereum is currently the only supported blockchain. However, JPMorgan expects to add other blockchain networks later.
Fund Targets Stablecoin Reserve Demand
JLTXX is specifically designed to meet reserve standards outlined under the GENIUS Act, which established federal stablecoin reserve requirements in 2025. The filing said stablecoin issuers may use the fund as an eligible reserve asset.
The proposed product follows JPMorgan’s earlier launch of MONY, its first tokenized money market fund introduced on Ethereum last year. MONY launched with a $100 million seed investment from JPMorgan.
Eric Balchunas, senior ETF analyst at Bloomberg, noted that JLTXX carries a 0.16% fee after waivers, lower than many traditional money market funds.
Wall Street Pushes Deeper Into Tokenization
JPMorgan’s filing arrives as major financial firms continue expanding tokenized treasury and liquidity products. BlackRock recently filed to tokenize treasury-based liquidity funds on Ethereum, while Ripple, Mastercard, and Ondo Finance have also pursued tokenized treasury initiatives.
The bank stated JLTXX transactions could settle within minutes instead of traditional T+1 or T+2 timeframes. The filing also noted the fund requires a $1 million minimum investment, keeping the product focused on institutional participants.
JPMorgan continues building blockchain infrastructure through Kinexys, which already supports tokenized deposits, programmable payments, and real-time settlement tools tied to institutional finance.
