Blockchain bromance

Crypto and banks were frenemies at best, but JPMorgan just made a move.

The bank is about to launch My OnChain Net Yield (MONY), its first tokenized money-market fund. The vehicle debuts tomorrow with $100 million and targets institutions with at least $25 million and individuals with $5 million, with a $1 million minimum to participate.

Tokenization essentially takes a traditional asset and puts it on the blockchain. For investors, it means they can earn yield while keeping their assets fully on-chain, addressing the long-standing issue of stablecoins sitting idle and interest-free. For fund managers, tokenization can speed up settlement, lower costs, and attract digitally native clients, with some tokenized fund shares even accepted as collateral on crypto exchanges.

JPMorgan’s not the first Wall Street firm to tokenize. It joins a wave of major financial firms, including Franklin Templeton and BlackRock, that are rolling out tokenized funds on blockchain rails.

The fund will be supported by Kinexys Digital Assets, JPMorgan’s in-house tokenization platform that has been under development for several years.

A changing crypto landscape

The launch follows the Office of the Comptroller of the Currency’s (OCC) recent move to grant conditional approval for Circle and Ripple to form national trust banks—an early green light that, if finalized, would allow crypto firms to take custody of customer assets and settle payments nationwide, though they still cannot take deposits or make loans like traditional banks.

The decision comes amid a surge in interest from other firms trying to break into banking. According to Klaros Group, twelve trust-bank applications have been filed this year, the most in eight years. Coinbase, Wise, BitGo, Paxos, Fidelity and Sony Bank are among the applicants.

Still not a perfect match

Traditional banks haven’t welcomed the shift. Banking groups urged the OCC to deny several of the applications, arguing that crypto firms would be able to serve bank customers without adhering to the same capital, liquidity, and supervisory requirements traditional banks face.

Proponents argue the pushback has more to do with protecting market share than ensuring stability. Stablecoin issuers like Circle and Ripple could eventually offer faster, lower-cost payment rails, a development that could sidestep banks and card networks if stablecoins gain mainstream adoption. A national trust charter would accelerate that trajectory by giving these firms federal oversight, nationwide authority, and the regulatory credibility needed to attract large merchants and platforms. For banks, that poses a direct threat to some of their most profitable services.

Despite those concerns, the financial system continues to move onto digital rails, supported by the Trump administration’s crypto-friendly stance and the passage of the GENIUS Act. As JPMorgan’s new money market fund announcement indicates, it’s a shift that increasingly points toward adaptation rather than resistance.—SY