JPMorgan has filed with the SEC to launch JLTXX, its second tokenized money market fund tied to Ethereum.
The proposed JPMorgan OnChain Liquidity-Token Money Market Fund is designed to hold U.S. Treasury securities and repurchase agreements backed by Treasuries or cash.
The filing positions the product as a reserve option for stablecoin issuers as U.S. lawmakers advance the GENIUS Act.
JLTXX Targets Stablecoin Reserve Demand
JLTXX would trade as a token class of shares and use blockchain infrastructure managed by Kinexys Digital Assets, JPMorgan’s internal digital assets unit. The filing says Ethereum is currently the only blockchain available to investors, although JPMorgan may add other networks later.
The fund appears built for a narrow compliance use case. JPMorgan said the portfolio will invest in a way intended to satisfy eligible reserve asset requirements for stablecoin issuers. The GENIUS Act would require U.S. stablecoin companies to back tokens with liquid assets such as cash, Treasuries, and insured bank deposits.
That structure separates JLTXX from a broad retail investment product. It gives stablecoin issuers a possible on-chain reserve vehicle while preserving exposure to traditional short-term government assets. The filing did not specify when the fund could begin full operations or accept investors under the proposed structure.
Banks Push Deeper Into Tokenized Assets
JPMorgan’s latest filing extends its tokenization strategy after the bank launched its MONY fund late last year. MONY targeted institutional investors seeking on-chain cash management, while JLTXX focuses more directly on stablecoin reserve needs.
The move also comes as major financial firms compete in tokenized real-world assets. Franklin Templeton already offers BENJI, a tokenized money market product. Morgan Stanley also filed for a stablecoin reserve money market fund last month, though its proposed product does not use blockchain.
Data from RWA.xyz showed the tokenized real-world asset market at about $32.2 billion as of May 12. U.S. Treasury products represented the largest segment, with about $15.9 billion in value, as institutional demand kept moving toward regulated blockchain-based products.
Fees Reflect Waiver Through 2028
The SEC filing lists total annual operating expenses of 0.71% for Token Class shares before waivers. JPMorgan and its affiliates agreed to cap net expenses at 0.16% through June 30, 2028.
The waiver means a $10,000 investment would cost about $16 in the first year and $113 over three years, based on the filing’s assumptions. The fund is registered under the Investment Company Act of 1940 and the Securities Act of 1933.
JPMorgan also disclosed standard money market risks, including interest rate and credit risks. The filing adds blockchain technology risk and stablecoin issuer shareholder transaction risk, reflecting the fund’s new structure and reserve market role ahead.
