JPMorgan Chase has filed to launch a tokenized money market fund aimed specifically at stablecoin issuers, marking the latest Wall Street push into digital asset infrastructure. The filing comes roughly three weeks after Morgan Stanley introduced its own fund designed to hold stablecoin reserves.
Two big banks, two reserve funds
Morgan Stanley's fund, called the Stablecoin Reserves Portfolio, was the first of its kind from a major U.S. bank. JPMorgan's entry follows the same playbook: a money market fund that stablecoin companies can use to park the dollar-denominated collateral backing their tokens. Both funds are structured to meet the liquidity and regulatory demands that stablecoin issuers face under evolving state and federal rules.
The filings do not disclose the target size or launch date for JPMorgan's fund. Morgan Stanley's portfolio began accepting assets in mid-October, according to public records.
Why stablecoin issuers need bank-grade funds
Stablecoin operators have traditionally relied on commercial paper, U.S. Treasuries, and cash deposits to back their tokens. Regulators have pressed for higher-quality, more transparent reserves. A tokenized money market fund — one that lives on a blockchain — lets issuers show real-time proof of reserves while keeping the underlying assets in a regulated bank product. JPMorgan's fund is expected to run on its own blockchain network, Onyx, though the filing does not specify the technical details.
The move also signals that JPMorgan sees stablecoins as a lasting part of the payments and settlement landscape, not a passing trend. The bank has been experimenting with tokenized deposits and repo transactions for years.
What's still unknown
Neither bank has said which stablecoin issuers have signed on as clients. JPMorgan's filing with the Securities and Exchange Commission is a preliminary step; the fund must clear regulatory review before it can begin accepting subscriptions. The Morgan Stanley fund is already operational but has not disclosed its asset total. The two funds may end up competing for the same handful of large stablecoin firms, including Circle (USDC) and Paxos-backed tokens, though neither company has publicly committed to either product.
The filing also does not reveal the fund's expense ratio or minimum investment threshold. Those details typically emerge in the final prospectus.
JPMorgan's application is now under SEC review. Morgan Stanley's fund continues to operate without a set deadline for the next public disclosure. For stablecoin issuers looking for a bank-grade reserve home, the choice between two of the largest U.S. banks is about to get real.
