JPMorgan Introduces Two Solana-Based Tokenised Funds for US Investors

Two tokenised money market funds called MONY and JLTXX are available on Solana for qualifying US users using Morgan Money Platform by JPMorgan Asset Management. JPMorgan Asset Management announced that subscribing and redeeming are possible through Morgan Money, and tokens will be deposited in their respective blockchain wallets. According to JPMorgan's MONY Frequently Asked Questions (FAQs), the initial investment required is $1 million (roughly Rs. 9.4 crore) and the fees charged are 16 basis points. This document outlines a private placement fund, which is established in the British Virgin Islands and requires investor onboarding through AML/KYC checks. 

MONY Targets Stable Net Asset Value Through Short-Term US Treasury Investments 

As per the release, the FAQ states that MONY invests in US Treasury bonds and Treasury-supported repos. The investment objectives of the firm target stability for a $1 (roughly Rs. 94) net asset value, with investments in Treasury Bonds being restricted to those that have 93 days left to maturity. While the plan is to adhere to the investment guidelines for government money market funds of MONY, the JPMorgan FAQ states that the private fund is not bound by Rule 2a-7. According to the document, SS&C is the transfer agent, and the official shareholder ledger is still off-chain. 

JPMorgan's FAQ mentions that an investor should have his/her blockchain address to keep the MONY tokens. It allows token interaction for transactions and transaction requests, whereas peer-to-peer transactions are limited to clients only. This document is from before the Solana launch and does not lay out all the operational aspects of the new deployment. 

December's Report Mentioned that cash management for the institution was the main purpose of that product. The $100 million (roughly Rs. 949 crore) number represented the initial capital internally and not the amount that is currently on Solana or MONY's total assets.

Earlier this year in May, JPMorgan had announced the plan to launch this tokenised money market fund on Ethereum, allowing stablecoin issuers to hold the reserves backing their stablecoins in a regulated, cash-like vehicle while earning interest. Investors are subject to a minimum investment requirement of $1 million (roughly Rs. 9.4 crore), and the fund carries a 0.16 percent annual fee after waivers. JPMorgan's blockchain unit, called Kinexys Digital Assets, will be managing the fund. 

In October, Solana Foundation also introduced an open-source settlement solution that allows banks to execute transactions of tokenised payments and assets simultaneously. Solana Foundation announced Solana DvP on October 6 as a delivery-versus-payment (DvP) solution available under the MIT license. JPMorgan contributed information on the securities settlement process during the development of the framework by the Foundation.