JPMorgan launches new crypto fund for wealthy – Business News
JPMorgan Chase — whose CEO Jamie Dimon as soon as dismissed bitcoin as a “fraud” and likened cryptocurrencies to a “Ponzi scheme” — is diving additional into crypto with a money-market fund that’s based mostly on blockchain.
The bank’s asset-management division, which handles $4 trillion, will begin the Wall Street giant’s first tokenized money-market fund — this one on the Ethereum community — with $100 million of its own money, the Wall Street Journal reported.
The fund — known as the My OnChain Net Yield Fund, or MONY — will likely be opened to exterior traders on Tuesday, however it’s not aimed on the plenty: The minimal investment is $1 million, and people need a minimum of $5 million in investments to qualify. Institutions need a minimum of $25 million.
JPMorgan is planning to launch a tokenized fund with the Ethereum digital property community, in accordance with the WSJ. Bloomberg by way of Getty Images
A money-market fund is like a protected financial savings option that invests in short-term money owed from governments or firms, incomes a bit more curiosity than a common bank account.
A fund is known as “tokenized” when these property are became digital tokens on a blockchain, a giant online record-keeping system that doesn’t need a central bank or company to handle it.
Ethereum is one of the primary blockchain networks. Investors can buy into the fund by JPMorgan’s online portal and get digital tokens of their crypto wallets, that are like digital storage for online money.
They can use money or USDC, a stablecoin that holds a regular worth tied to the US greenback, issued by Circle Internet Group. The fund pays curiosity and dividends day by day, identical to conventional ones.
This transfer comes after the Genius Act handed earlier this yr, setting guidelines for stablecoins and sparking more tokenization of shares, bonds, funds, and real estate.
“There is a massive amount of interest from clients around tokenization,” John Donohue, head of world liquidity at JPMorgan Asset Management, instructed the Journal.
Jamie Dimon has criticized cryptocurrencies prior to now, whereas praising the blockchain technology that helps them operate. REUTERS
“And we expect to be a leader in this space and work with clients to make sure that we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain.”
Money-market funds have grown well-liked, with complete property at about $7.7 trillion now, up from $6.9 trillion at first of 2025, in accordance with the Investment Company Institute.
Stablecoins have a market worth of over $300 billion, in accordance with information compiled by CoinGecko.
Tokenized funds appeal to crypto customers as a result of they earn yields whereas staying totally on the blockchain, avoiding idle money in stablecoins that don’t pay curiosity.
Guests attend the opening of JPMorgan’s new 270 Park Avenue headquarters earlier this yr. The Norman Foster-designed building got here with a hefty $3B price tag. REUTERS
For managers, it reduces prices and speeds up offers. Some funds function collateral on crypto exchanges, serving to to draw new shoppers to digital property.
JPMorgan’s transfer highlights a shift in its strategy to digital property, regardless of previous criticisms from Dimon, its long-serving chief government.
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In January 2023, he known as bitcoin “a hyped-up fraud, it’s a pet rock,” and as soon as branded crypto tokens “decentralized Ponzi schemes.”
The veteran banker has stated blockchain technology itself is actual and helpful, separate from cryptocurrencies like Bitcoin. Other corporations are doing comparable issues.
BlackRock runs the most important tokenized money fund with over $1.8 billion. In July, Goldman Sachs and Bank of New York Mellon teamed up to create tokens for funds from BlackRock, Fidelity, and others.
JPMorgan just lately tokenized a private-equity fund for wealthy shoppers.
Companies like Robinhood, Kraken, and Gemini launched tokenized shares and exchange-traded funds for traders exterior the U.S. earlier this yr.
