JPMorgan files second tokenized Treasury fund on Ethereum

JPMorgan Asset Management filed to launch a second tokenized money market fund on Ethereum. The fund is named the JPMorgan OnChain Liquidity Token Money Market Fund and would trade under the ticker JLTXX. The filing appears under the J.P. Morgan Money Market Funds with Token Class shares prospectus dated May 13.

The filing states JLTXX will invest exclusively in U.S. Treasury bills, notes and bonds and in overnight repurchase agreements fully collateralized by U.S. Treasuries or cash. All holdings will be denominated in U.S. dollars. The fund’s stated objectives are to seek current income while preserving liquidity and stability of principal and to maintain a $1 net asset value.

Investors will be able to submit transaction requests using blockchain technology. JPMorgan plans to use Ethereum to record token balances and transactions. Kinexys Digital Assets, a business unit within JPMorgan Chase Bank, will design, deploy and operate the blockchain infrastructure described in the filing.

The fund structure uses a permissioned layer built on top of public blockchains. Investors must use approved blockchain addresses to transact token balances tied to fund shares. The transfer agent will continue to maintain the official ownership record in book-entry form. Token balances are intended to match fund shares one-for-one, and the filing says the official register will control if a blockchain balance and the register differ.

Ethereum is the only blockchain available to investors at launch, and the filing says JPMorgan expects to expand access to other blockchains in the future. The filing describes the distributed ledger as a transaction and token-balance layer around a regulated money market fund rather than as the legal ownership layer.

The filing follows an earlier JPMorgan tokenized money market fund, My OnChain Net Yield Fund, which JPMorgan initially seeded with $100 million. The documents reflect continued development of blockchain-based liquidity products intended for institutional investors and for use alongside regulated fund structures.