JPMorgan Chase filed an application with the US Securities and Exchange Commission (SEC) on May 12 for a second money market fund on Ethereum, proposing digital tokens tied to a portfolio of US Treasuries and overnight repurchase agreements that investors could hold in digital wallets or deploy as on-chain collateral.
This registration indicates that the token’s real world assets (RWA) have been traced. rwa.xyz The total market capitalization is estimated to have reached approximately $32 billion, and competitors, including BlackRock, are making similar corporate offers under the recently passed GENIUS Act.
This is not just another product launch. JPMorgan is signaling that the experimental phase of institutional tokenization is over — and that Ethereum’s public infrastructure, not the bank’s permissioned network, is where the next phase of cross-chain finance scales.
We doubt the Ethereum mainnet will be chosen over JP
Morgan Kinexis’s digital asset infrastructure for client-facing products reflects a deliberate recognition that institutional liquidity does not accumulate on siled, bank-led networks.
JP Morgan JLTXX File: How the Second Tokenized Treasury Fund Actually Works
The mechanism works as follows: The new fund, which is structured under JP Morgan Trust IV as token-class shares and designated JLTXX, files as of May 13, 2026, with underlying assets tied to U.S. Treasury securities maturing in 93 days or less, maintaining at least 99.5% in cash or government assets in accordance with SEC Rule 2a-7.
Transactions are settled in minutes rather than the T+1 or T+2 cycles of traditional money market funds, while legal custody of the assets remains with a traditional custodian – and blockchain balances reflect holdings on a one-to-one basis, with traditional bookkeeping records prevailing in the event of a dispute.
Unlike the first bank token fund, MONY, which requires a minimum investment of $1 from qualified investors, including institutions with $25 million or more in assets and targets a broad institutional return, JLTXX is explicitly designed to serve as a reserve asset for stablecoin issuers operating under the GENIUS Act framework.
Permissioned Ethereum addresses handle compliance at the protocol level, allowing the fund to operate on the public blockchain while maintaining the access controls required for regulated institutional products. Subscriptions and redemptions accept stablecoins alongside cash, expanding the options available to treasury operators who already own digital assets.
The product is being routed through Kinexys Digital Assets, JP Morgan’s blockchain-based asset platform, which previously executed a $50 million commercial fiat token transaction on Solana and issued JPMD deposit tokens on Base — a series of public chain pilots that are now converging into a live SEC-registered product on Ethereum. As I mentioned previously, JP Morgan also completed a direct cross-border treasury redemption on the XRP Ledgerindicating a multi-chain situation reinforced by the JLTXX file.
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JPMORGAN has just applied to offer US Treasuries on Ethereum
JPMorgan has applied to launch JLTXX, the OnChain Liquidity-Token Money Market Fund, on the Ethereum ($ETH) blockchain.
The fund invests exclusively in U.S. Treasury securities and fully collateralized overnight repos. pic.twitter.com/PDREkZP9Au
-BSCN (@BSCNews) May 13, 2026
The GENIUS Act, signed into law in July 2025, created key regulations by prohibiting stablecoin issuers from paying interest, thus distinguishing between stablecoins and yielding products. This opened the door to tokenized money market funds under SEC rules. JPMorgan’s second deposit targets corporate treasury and cash management, which is now banned from stablecoin functions.
Competition has intensified, with BlackRock’s BUIDL fund surpassing $500 on Ethereum since its launch in March 2024, proving that real-world institutional asset (RWA) products can scale. By Q1 2026, the value of token RWAs had reached $8.6 billion, with Ethereum holding about 70% of that value. Franklin Templeton has also expanded into this space, with more filings expected on Solana, sparking a $12 billion race for institutional deposits.
JP Morgan’s Onyx blockchain technology, which launched in 2020 and handles more than $1 billion in transactions daily by 2025, provides a reliable infrastructure for this expansion. The MONY Fund was launched in December 2025 with $100 million in capital and is a proof of concept; JLTXX is the next product that aims to capture the reserve market, which stablecoins are no longer able to achieve.
Momentum is growing for institutional adoption, as evidenced by Charles Schwab’s move into cryptocurrency brokerage. Notably, JPMorgan’s second fund offering tokenized funds on a public blockchain network validates Ethereum as a settlement infrastructure for large-scale balance sheets.
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Neil is a professional cryptocurrency content writer with years of experience. He has written for numerous cryptocurrency websites to report breaking news, and has been hired by all kinds of cryptocurrency projects, to create content that will increase their exposure and attract more potential investors.
