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The launch of My OnChain Net Yield Fund (MONY) marks a watershed in Wall Street’s integration with on-chain finance. J.P. Morgan’s seeding of the fund with USD 100 million and its deployment of Ethereum blockchain-recorded tokenized shares reflect increasing confidence that public blockchains can support regulated financial products. ([prnewswire.com](https://www.prnewswire.com/news-releases/jp-morgan-asset-management-launches-its-first-tokenized-money-market-fund-302642262.html?utmsource=openai))
However, access is narrowly defined: MONY is a 506(c) private placement available only to individuals with at least USD 5 million and institutions with USD 25 million, requiring minimum initial subscription of USD 1 million. This limits liquidity, secondary market activity, and could restrict scale. ([prnewswire.com](https://www.prnewswire.com/news-releases/jp-morgan-asset-management-launches-its-first-tokenized-money-market-fund-302642262.html?utmsource=openai))
Structural design of MONY is conservative—holding only U.S. Treasuries and fully collateralized repos, with daily dividend reinvestment and optional redemptions/subscriptions via cash or stablecoins. This aligns with the characteristics of traditional MMFs but layered with on-chain benefits like near-instant settlement, peer-to-peer transferability, transparency, and potential for use as blockchain collateral. ([stocktitan.net](https://www.stocktitan.net/news/JPM/j-p-morgan-asset-management-launches-its-first-tokenized-money-9o241fgxlgto.html?utmsource=openai))
On the regulatory front, MONY leverages the environment shaped by passage of the GENIUS Act, which establishes clearer stablecoin regulation and facilitates innovation in crypto asset issuance—making its tokenization more sustainable. ([barrons.com](https://www.barrons.com/articles/jpmorgan-chase-crypto-tokenized-money-market-fund-d7df2df8?utmsource=openai))
But risks loom. Reports from BIS and Moody’s highlight potential liquidity mismatches inherent in tokenized MMFs: token ownership on public blockchains settles instantly, yet the underlying assets (Treasurys, repos) do not. Flash redemptions outside traditional market hours could strain operations. Also of concern are concentration of holders, smart contract risks, jurisdictional legal uncertainties, and dependency on associated infrastructure. ([cointelegraph.com](https://cointelegraph.com/news/tokenized-money-market-funds-bis-stablecoin-contagion-risks/?utmsource=openai))
Strategically, for J.P. Morgan it’s a forward move to capture on-chain yield demand, preserve client loyalty (by reducing stablecoin flight), and build competitive edge in a fast-moving field. But the firm must ensure robust internal controls, clear legal and regulatory alignment across jurisdictions, resilient tech operations (including audits and backups), and transparent disclosures to avoid misalignment between tokenized fund behavior and investor expectations. ([prnewswire.com](https://www.prnewswire.com/news-releases/jp-morgan-asset-management-launches-its-first-tokenized-money-market-fund-302642262.html?utmsource=openai))