JPMorgan Eyes Ethereum Again With Second Tokenized Treasury Fund

Kinexys Powers the Onchain Infrastructure

The move comes roughly five months after the bank debuted its first tokenized fund, the Onchain Net Yield Fund (MONY), in December 2025, suggesting JPMorgan views Ethereum-based tokenization as a core institutional product and not just a pilot.

The new fund will be operated by Kinexys Digital Assets, JPMorgan’s in-house blockchain unit. JLTXX introduces Token Class Shares, which let investors hold and transfer fund shares onchain while traditional book-entry ownership records are maintained in parallel.

Under the hood, the fund invests entirely in short-term U.S. Treasury securities and fully collateralized overnight repurchase agreements, the same conservative assets that anchor conventional money market funds.

Critically, JLTXX has been designed to comply with Rule 2a-7 of the Investment Company Act and is also structured to meet potential reserve requirements under the GENIUS Act (the stablecoin framework signed into law in July 2025), positioning the fund as a viable reserve asset for future compliant stablecoins.

The Institutional Race Heats Up

JPMorgan is not alone, as Blackrock’s BUIDL fund, the tokenized Treasury product launched on Ethereum in 2024. It had already crossed $2.8 billion in assets under management as of early 2026, making it the largest tokenized fund by AUM. Similarly, Franklin Templeton’s FOBXX offering operates across Stellar and Polygon, while Ondo Finance’s OUSG product offers tokenized T-bills to retail-eligible investors.

The timing of JPMorgan’s latest filing also aligns with regulatory momentum on Capitol Hill, with the Senate Banking Committee expected to hold a markup of the Digital Asset Market Clarity (CLARITY) Act in a couple of days, with a floor vote targeted for June or July. As institutional tokenization and U.S. crypto law inch toward alignment, funds like JLTXX are increasingly designed with regulatory compliance as a feature, not an afterthought.

Looking ahead, JLTXX still requires SEC approval before investors can access it. The fund will initially target institutional buyers, consistent with how MONY was rolled out but will likely remain out of reach for retail investors.

Still, the filing represents one of the clearest signals yet that JPMorgan sees tokenized real-world assets ( RWAs) as a durable business line. For a bank that publicly dismissed bitcoin as a fraud in 2017, the pace of blockchain-product launches in 2025 and 2026 marks a remarkable institutional course correction.