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J.P. Morgan Asset Management has filed with the Securities and Exchange Commission to register the "JPMorgan OnChain Liquidity-Token Money Market Fund' (ticker symbol: JLTXX), its second tokenized money market fund issued on Ethereum.
What's the Scoop?
- GENIUS Act Reserves: While JLTXX itself will not be a stablecoin, the fund will hold reserve assets that comply with the GENIUS Act's requirements for U.S. stablecoin issuers (i.e.; it will only purchase U.S. Treasury securities with remaining maturities of 93 days or less). The Fund's prospectus notes that JLTXX's compliance with GENIUS Act reserve requirements may cause, "lower [yields] than that of other money market funds that are permitted to invest in a wider universe of investments, including those with longer maturities."
- Powered By Ethereum: JLTXX will launch exclusively on Ethereum, although its prospectus indicates that expansions to additional chains could come later. As a registered security, shares of the money market fund will be transfer restricted, with only pre-approved addresses on the "allow list" authorized to purchase, redeem or transfer token balances.
- Second Tokenized Fund: This past December, J.P. Morgan Asset Management launched its first tokenized money market fund – the "My OnChain Net Yield Fund" or MONY – which is available via
Ethereum to qualified investors who subscribe through Morgan Money. The month prior, the bank began facilitating balance transfers for any institutional client via its JPMD tokenized deposit coin on Coinbase's 
Base blockchain.
What's the Take?
The crypto industry continues to occupy itself with squabbles over the semantics of CLARITY Act's stablecoin yield prohibitions, but it's long past time to recognize that the GENIUS Act has already explicitly banned yield payments to stablecoin holders.
J.P. Morgan Asset Management appears acutely aware of this dynamic, registering JLTXX as a security so that it can legally pay yield to investors.
