JPMorgan Launches ‘MONY’ on Ethereum; Kinexys Clears $1.5T
JPMorgan’s Kinexys division launches the $100M MONY fund on Ethereum, signaling a major shift in Wall Street’s settlement infrastructure following Fed guidance changes.
The Lead
JPMorgan Asset Management has deployed its first tokenized money market fund, the My OnChain Net Yield Fund (MONY), directly on the Ethereum blockchain. The move marks the first time a Global Systemically Important Bank (GSIB) has launched a tokenized fund on a public network, rather than a private ledger. The bank seeded the fund with $100 million. While Ethereum (ETH) traded heavily at $2,840 (-4%), the infrastructure play signals a decisive shift: Wall Street is no longer just testing rails, it is settling dollars on them.
The Mechanics
The MONY fund is powered by Kinexys (formerly Onyx), JPMorgan’s blockchain division which has now processed over $1.5 trillion in transaction volume. Unlike BlackRock’s BUIDL, which sits across multiple chains, MONY is currently an Ethereum-exclusive 506(c) private placement. It integrates with the bank’s Morgan Money platform, allowing qualified investors to subscribe and redeem via traditional cash rails or stablecoins, with the token itself representing the claim on US Treasury collateral.
The fund’s smart contract address (0x6a…bD46) confirms the issuance, validating that the settlement layer is live on public mainnet. Volume on Kinexys now exceeds $2 billion daily, a figure that rivals major crypto-native exchanges, yet operates entirely within a compliant banking perimeter.
Regulatory Greenlight
This deployment follows a quiet but critical regulatory pivot. On April 24, 2025, the Federal Reserve withdrew previous guidance (SR 22-6 and SR 23-8) that required banks to obtain explicit non-objection before engaging in crypto-asset activities. The shift to a standard “supervisory process” effectively removed the bureaucratic bottleneck that had stalled bank-led tokenization for two years. JPMorgan’s immediate scale-up of MONY suggests the bank was ready to move the moment the red tape dissolved.
Institutional Context
The timing creates a stark divergence in institutional crypto adoption. While corporate treasuries like MicroStrategy fight to remain in MSCI indexes, facing exclusion for holding too much Bitcoin, banking giants are embedding crypto backend rails to tokenize the dollar itself. The signal is clear: The “tokenized treasury” sector is bifurcating. One path leads to volatile balance sheet bets, the other, led by JPMorgan, focuses on the boring, high-volume machinery of daily settlement.
