JPMorgan Files Second Ethereum Tokenized Treasury Fund

JPMorgan has filed a prospectus with the SEC to launch the JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX), a tokenized U.S. Treasury money market fund built on the Ethereum blockchain and powered by Kinexys Digital Assets. The fund is structured to meet reserve requirements for stablecoin issuers under the GENIUS Act, the federal stablecoin law enacted in July 2025.

Under normal conditions, the prospectus says JLTXX will invest only in U.S. Treasury securities and Treasury-collateralized overnight repurchase agreements. The filing states the fund will be managed to qualify as an eligible reserve asset under the GENIUS Act, allowing stablecoin issuers to invest in the fund to satisfy reserve rules adopted under that law.

JLTXX is proposed to issue digital shares that settle on-chain. The filing describes on-chain settlement and custody arrangements intended to permit institutional and regulated entities that must hold specific reserve assets under the GENIUS Act to place funds into a vehicle backed by Treasuries. The prospectus ties the fund’s investment limits and operations to compliance with the act and any implementing regulations.

JPMorgan says the fund will launch on Ethereum and may expand to other blockchain networks over time. JLTXX would be the bank’s second tokenized money market fund on Ethereum, after the My OnChain Net Yield Fund (MONY), which JPMorgan launched in December 2025 with an initial $100 million placement.

The prospectus does not give a public launch date or a target for assets under management. It states that custody, settlement and compliance procedures will follow applicable SEC rules and the regulatory framework implementing the GENIUS Act.

Industry trackers show Ethereum accounts for more than half of the distributed tokenized real-world asset market and supports roughly 846 tokenization projects, making it a common settlement layer for institutional issuers. Several major asset managers have used Ethereum for fund issuance.

Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered, expects Ethereum to attract the bulk of traditional finance activity on blockchain over the next couple of years. JPMorgan’s filing illustrates how regulated financial firms are structuring tokenized products to align with the GENIUS Act’s eligible reserve requirements by relying on short-term Treasury instruments and overnight repurchase agreements to preserve liquidity and stability for investors.