Something interesting is happening beneath the polished surface of global finance. According to Bloomberg, JPMorgan - a bank whose CEO once publicly branded Bitcoin a “fraud” - has now rolled out its first tokenised money market fund. That alone is enough to raise an eyebrow.

The product in question is called MONY, short for My OnChain Net Yield Fund. And rather than being tucked away on a private ledger, it lives on Ethereum - one of the world’s most widely used public blockchains. The contrast between past scepticism and present action is hard to ignore.

So what’s really going on here? Is this a reluctant concession to an unstoppable trend, or a more deliberate move by one of Wall Street’s most influential players to shape what comes next? Either way, industry observers note that  that the conversation around blockchain inside big banks has clearly shifted.

MONY, MONY, MONY: The lowdown on JPMorgan's new fund

Let’s break it down. What exactly is MONY?

At its core, it’s a familiar concept. Consider a conventional money market fund, which is built around low-risk, short-term instruments, such as U.S. Treasuries, designed to preserve capital while generating modest returns. Now imagine that structure represented digitally, with ownership recorded as blockchain-based tokens. That’s the basic idea.

Despite the cutting-edge technology, access remains tightly controlled. MONY is a private offering specifically designed for institutional investors and ultra-high-net-worth individuals. Eligibility is restricted to qualified investors, with significant wealth or assets under management and a minimum investment threshold firmly in seven figures.

Operationally, investors receive tokens that reflect their proportional stake in the fund. These tokens accrue interest daily, targeting yields that are competitive with - or higher than - traditional cash holdings. Investors can subscribe or redeem using cash, or via USDC, a regulated stablecoin issued by Circle. Behind the scenes, JPMorgan’s Kinexys Digital Assets infrastructure keeps the machinery running.

The appeal lies in efficiency. Blockchain settlement promises faster processing, near-continuous availability, and clearer transaction records. In theory, these tokenised units could even be deployed as collateral elsewhere on-chain, extending their usefulness beyond a simple yield product.

From gold-backed bills to digital tokens

To put MONY into context, it helps to take a step back. Tokenisation may sound revolutionary, but the idea of representing value through instruments is hardly new. Paper currency once symbolised claims on physical gold. More recently, structures like ETFs and REITs have digitised ownership in ways that have reshaped markets, even if the underlying complexity of their operations remains.

The real turning point came with the launch of Ethereum in 2015. Bitcoin introduced decentralised value transfer, but Ethereum added programmable logic through smart contracts. That innovation laid the groundwork for representing not just money, but ownership, rights, and obligations directly on the blockchain.

For financial institutions, the attraction gradually became harder to dismiss. Analsyts suggest that transparent ledgers, tamper-resistant records, and the potential to reduce settlement times from days to minutes all pointed to significant operational gains - at least in theory.

Why are big banks getting tokenised?

Client demand appears to be a major driver. JPMorgan executives have pointed to growing interest from institutional customers exploring tokenised formats for managing liquidity more efficiently. This isn’t about novelty; it’s about meeting expectations shaped by an always-on, digitally native world.

Some analysts also see tokenised money market funds as a strategic response to the rise of stablecoins. Rather than parking funds in non-yielding digital cash, investors may prefer regulated, interest-bearing alternatives that still operate on blockchain rails.

JPMorgan is far from alone. BlackRock’s BUIDL fund has already amassed billions in assets, while other global banks - from Goldman Sachs to Deutsche Bank - are actively experimenting with tokenised products. What once looked like a fringe experiment is quickly becoming a competitive arena.

Regulation has helped too. Clearer guidance around digital assets and stablecoins in the U.S. has reduced uncertainty, giving large institutions more confidence to move beyond pilot projects. For JPMorgan, which has invested in blockchain infrastructure for nearly a decade, some say launching MONY on a public network feels like a logical next step.

Not all sunshine and smart contracts: The MONY maze of controversies & risks

That said, the picture isn’t entirely rosy.

There’s the reputational irony, for one. JPMorgan’s embrace of Ethereum hasn’t gone unnoticed by the crypto community, given its leadership’s earlier criticisms. The contrast has fuelled debate about whether this represents genuine conviction or simple pragmatism.

Internally, doubts remain. Some analysts within the bank have questioned whether institutional adoption of tokenisation has lived up to expectations so far, suggesting enthusiasm may still outweigh practical necessity.

Speed is another sticking point. While blockchains promise faster settlement, critics argue that existing financial infrastructure already handles many transactions efficiently, raising questions about whether the gains justify the complexity.

More concerning is the potential mismatch between always-on blockchain markets and the slower settlement cycles of traditional assets. In stressed conditions, that gap could expose investors to liquidity risks.

Public blockchains also introduce new vulnerabilities, from smart contract flaws to network outages. Additionally, compliance requirements often necessitate “allow-listing,” where only approved wallets are permitted to transact. While necessary, this restriction limits transferability and can fragment liquidity across closed networks.

Regulatory uncertainty hasn’t disappeared either, particularly for cross-border transactions. The close relationship between tokenised funds and stablecoins raises the risk that stress in one area could spill over into another. Unsurprisingly, institutions like the Bank for International Settlements have warned that tokenisation could create new forms of systemic risk if not carefully managed.

Gazing into the crystal ball: Will tokenisation take over the world?

Despite the challenges, optimism remains strong. Forecasts suggest that the tokenised asset market could grow to tens of trillions of dollars by the end of the decade, spanning everything from bonds to real estate.

Several developments will be worth watching. Fractional ownership could broaden access to traditionally illiquid assets. Smart contracts may automate compliance, settlement, and payments with fewer intermediaries. Entirely new asset classes - from carbon credits to intellectual property - could find homes on-chain.

The combination of blockchain and AI also holds promise, potentially improving portfolio management and risk analysis. Further down the line, some envision unified ledgers where digital currencies, deposits, and securities coexist, enabling real-time global settlement.

Analysts generally agree tokenisation won’t replace traditional finance overnight. But it is likely to push the industry toward faster processes, lower costs, and new revenue models - even as it challenges banks to rethink the role of deposits in a tokenised world.

JPMorgan's MONY - a peek into finance’s next chapter

MONY is more than a single product launch. Analysts note that it reflects a broader shift in how major institutions are engaging with blockchain technology - cautiously, selectively, but with growing conviction.

The initiative highlights both the promise and the complexity of tokenisation. Recent reports indicate that efficiency gains and new possibilities sit alongside unresolved risks and regulatory questions.

Whether this marks the early stages of a true transformation or simply a sophisticated experiment remains to be seen. For now, MONY offers a compelling snapshot of where finance may be heading - and why the journey is unlikely to be straightforward.

‍