JPMorgan Has Nearly $900 Million in Tokenized Funds on Ethereum and Solana. Which Chain Benefits More? - 24/7 Wall St.
JPMorgan has deployed nearly $900 million in tokenized funds across Ethereum and Solana blockchains, with Ethereum receiving the larger share of investments.
According to Sentora data, JPMorgan's OnChain Liquidity-Token Money Market Fund (JLTXX) holds about $792 million across both networks, while the My OnChain Net Yield Fund (MONY) contains an estimated $103.1 million on Ethereum alone. Despite these significant investments, both cryptocurrencies experienced declines during the same period, with ETH falling to $2,333 (down 2.1%) and SOL dropping to $101 (down 1.5%).
Fund Details and Distribution
JLTXX is a U.S.-registered government money market fund investing in short-term government debt, designed specifically for stablecoin issuers to hold reserves under the GENIUS Act. MONY, by contrast, is a private placement fund available only to high-net-worth individuals under SEC Rule 506(c). Both funds operate through Morgan Money, JPMorgan's cash management platform, which allows investors to subscribe and redeem tokens at designated blockchain addresses.
The bank made two significant moves in one week: introducing JPM Coin deposit token (JPMD) to Ethereum on October 19, and launching both MONY and JLTXX on Solana on October 22. However, neither Sentora nor JPMorgan has disclosed how JLTXX's $792 million is split between the two networks, making it difficult to determine Solana's actual share of these investments.
Strategic Considerations
While JPMorgan cited Ethereum's "established depth of on-chain liquidity and tokenized assets" as its reasoning for choosing the network, the bank's own JPMD token is not yet available on Ethereum, where Sentora reports only a $1 million supply on Base. Paul Przybylski, head of digital and tokenized assets at J.P. Morgan Asset Management, explained that clients operate across multiple networks, so liquidity should reflect that need.
Clients operate across multiple networks, so their liquidity should reflect that need.
Transaction Limitations
The announcements didn't commit anyone to buy or hold ETH or SOL. While tokenized funds incur small transaction fees (gas) when moving assets, money market fund tokens primarily sit in institutional wallets, generating less fee activity than stablecoin transfers or trading. Notably, the Solana announcement excluded details about on-chain cash used for trading fund tokens, with no reference to stablecoins or JPMD for that network.
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