JPMorgan Enters Public Ethereum as Tokenized Treasuries Hit $8.8B
JPMorgan launches its MONY fund on public Ethereum as the tokenized Treasury market swells 125% to $8.86 billion, signaling the era of ‘programmable cash.’
The Lead: Banks Cross the Rubicon
The firewall between traditional banking and public blockchains dissolved further this week. JPMorgan Asset Management launched its “My OnChain Net Yield Fund” (MONY) on the public Ethereum mainnet, seeding it with $100 million. This move marks the first time a Global Systemically Important Bank (GSIB) has deployed a money market fund directly on a permissionless ledger rather than a private silo.
The launch coincides with a surge in the tokenized US Treasury market, which RWA.xyz data confirms grew 125% year-over-year to $8.86 billion as of January 2026. The total value of distributed real-world assets (RWA) reached $19.72 billion on Jan. 9, narrowly missing the $20 billion psychological threshold.
The Programmable Cash Loop
Institutions are no longer treating tokenized Treasuries as mere yield-bearing parking spots. They are engineering what analysts call “programmable cash.” Unlike traditional T-bills, which lie dormant until settlement, assets like BlackRock’s BUIDL and Circle’s newly acquired USYC (via Hashnote) utilize smart contracts to automate interest payments and facilitate 24/7 peer-to-peer transfers.
“Institutions are treating tokenized Treasuries as programmable cash… Tokens move peer-to-peer without intermediaries.”
BlackRock’s BUIDL fund, managed with Securitize, cemented its dominance with assets surpassing $1 billion. Simultaneously, Circle (issuer of USDC) moved to corner the yield-bearing stablecoin vertical by acquiring Hashnote, the issuer of the $1.5 billion USYC fund. Circle intends to integrate USYC directly into its stablecoin infrastructure, effectively blurring the line between non-interest-bearing stablecoins and Treasury-backed securities.
Market Reaction & Data
Despite the institutional validation, major L1 tokens remained muted, likely weighed down by broader macro conditions. Ethereum (ETH) traded flat at $3,094 (-0.8%), while Solana (SOL), which recently saw USYC expand to its network, slipped to $136 (-1.3%).
However, RWA-specific governance tokens outperformed. Ondo Finance (ONDO), a key competitor in the tokenized yield space with its USDY product, rose 1.7% to $0.45, reflecting the sector’s localized bullishness. The divergence suggests traders are pricing this as an infrastructure win for specific protocols rather than a broad-market catalyst.
Institutional Outlook
JPMorgan’s decision to utilize public Ethereum over its proprietary Onyx chain signals a shift in risk tolerance for regulated entities. By accepting public chain settlement, the bank forces competitors to re-evaluate their own private-ledger strategies. With BUIDL and USYC already entrenched, the race is now to liquidity depth, not just issuance.
