Financial Giants Seek Regulatory Approval for Government Bond-Backed Digital Currency Products

J.P. Morgan Asset Management launched the JPMorgan OnChain Liquidity-Token Money Market Fund (JLTXX) on the public Ethereum blockchain on 13 May 2026. The firm invested $100 million in the fund at launch, with Anchorage Digital participating alongside. JLTXX invests exclusively in U.S. Treasury securities and overnight repurchase agreements collateralised fully by U.S. Treasuries and cash. Qualified investors can subscribe through Morgan Money, JPMorgan's liquidity management platform, using cash or stablecoins. The fund is JPMorgan's second tokenised money market product on a public blockchain, following the MONY private placement launched the previous year.

BlackRock files to add blockchain-based share class to its $7 billion Treasury fundBlackRock filed SEC documents in May 2026 to add an on-chain share class to its Select Treasury Based Liquidity Fund (BSTBL), a money market vehicle managing approximately $7 billion. BNY Mellon will act as the transfer agent, maintaining official ownership records on the blockchain while keeping investor identity data off-chain. The filing accompanies a separate application for a new Daily Reinvestment Stablecoin Reserve Vehicle — a fund designed to hold cash, short-term U.S. Treasuries, and overnight repo agreements backed by Treasuries. Both products are structured for Ethereum under the Investment Company Act of 1940.

GENIUS Act opens stablecoin reserve market to tokenised government money market fundsThe Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), enacted in July 2025, established the first federal regulatory framework for payment stablecoins in the United States. Among its reserve eligibility provisions, the Act explicitly includes government money market funds and tokenised forms of those instruments. J.P. Morgan Asset Management stated that JLTXX is designed to support stablecoin issuers meeting GENIUS Act reserve requirements. Stablecoin issuers under the new framework can hold yield-bearing on-chain Treasury positions as part of their reserve portfolios. This replaces the off-chain cash equivalents previously required.

Ethereum accounts for more than half of a $13.9 billion tokenised Treasury marketThe tokenised U.S. Treasury market is valued at approximately $13.9 billion, according to Token Terminal data cited in industry reporting as of late May 2026. Ethereum holds more than 50% of overall activity in the sector, with BNB Chain holding more than 20%. Both JPMorgan and BlackRock are launching their on-chain Treasury products on Ethereum — the same network where the majority of stablecoin liquidity already concentrates, reinforcing its position as the preferred settlement layer for institutional on-chain products.

Ethereum trades at $1,987 as institutional Treasury product launches accelerateEthereum traded at $1,987.23 at the time of publication, down 4.62% over the preceding 24 hours, with a market capitalisation of approximately $239.3 billion (CoinPaprika, 28 May 2026). JPMorgan's JLTXX and BlackRock's planned on-chain share class both settle on the Ethereum network. The 24-hour price decline coincides with broad market conditions on 28 May 2026, separate from the institutional product activity.

BlackRock's Daily Reinvestment Stablecoin Reserve Vehicle awaits SEC approvalBlackRock's second May 2026 filing — the Daily Reinvestment Stablecoin Reserve Vehicle — remains subject to SEC review. The firm has not disclosed a timeline for when the structure plans to begin accepting subscriptions. JPMorgan describes JLTXX as its second tokenised money market product on a public blockchain; both firms are now developing parallel product lines targeting the same GENIUS Act reserve market. BlackRock filed SEC documents in May 2026 to add an on-chain share class to its Select Treasury Based Liquidity Fund (BSTBL), a money market vehicle managing approximately $7 billion. BNY Mellon will act as the transfer agent, maintaining official ownership records on the blockchain while keeping investor identity data off-chain. The filing accompanies a separate application for a new Daily Reinvestment Stablecoin Reserve Vehicle — a fund designed to hold cash, short-term U.S. Treasuries, and overnight repo agreements backed by Treasuries. Both products are structured for Ethereum under the Investment Company Act of 1940.

BlackRock's Daily Reinvestment Stablecoin Reserve Vehicle awaits SEC approvalBlackRock's second May 2026 filing — the Daily Reinvestment Stablecoin Reserve Vehicle — remains subject to SEC review. The firm has not disclosed a timeline for when the structure plans to begin accepting subscriptions. JPMorgan describes JLTXX as its second tokenised money market product on a public blockchain; both firms are now developing parallel product lines targeting the same GENIUS Act reserve market. The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), enacted in July 2025, established the first federal regulatory framework for payment stablecoins in the United States. Among its reserve eligibility provisions, the Act explicitly includes government money market funds and tokenised forms of those instruments. J.P. Morgan Asset Management stated that JLTXX is designed to support stablecoin issuers meeting GENIUS Act reserve requirements. Stablecoin issuers under the new framework can hold yield-bearing on-chain Treasury positions as part of their reserve portfolios. This replaces the off-chain cash equivalents previously required.

BlackRock's Daily Reinvestment Stablecoin Reserve Vehicle awaits SEC approvalBlackRock's second May 2026 filing — the Daily Reinvestment Stablecoin Reserve Vehicle — remains subject to SEC review. The firm has not disclosed a timeline for when the structure plans to begin accepting subscriptions. JPMorgan describes JLTXX as its second tokenised money market product on a public blockchain; both firms are now developing parallel product lines targeting the same GENIUS Act reserve market. The tokenised U.S. Treasury market is valued at approximately $13.9 billion, according to Token Terminal data cited in industry reporting as of late May 2026. Ethereum holds more than 50% of overall activity in the sector, with BNB Chain holding more than 20%. Both JPMorgan and BlackRock are launching their on-chain Treasury products on Ethereum — the same network where the majority of stablecoin liquidity already concentrates, reinforcing its position as the preferred settlement layer for institutional on-chain products.

BlackRock's Daily Reinvestment Stablecoin Reserve Vehicle awaits SEC approvalBlackRock's second May 2026 filing — the Daily Reinvestment Stablecoin Reserve Vehicle — remains subject to SEC review. The firm has not disclosed a timeline for when the structure plans to begin accepting subscriptions. JPMorgan describes JLTXX as its second tokenised money market product on a public blockchain; both firms are now developing parallel product lines targeting the same GENIUS Act reserve market. BlackRock's second May 2026 filing — the Daily Reinvestment Stablecoin Reserve Vehicle — remains subject to SEC review. The firm has not disclosed a timeline for when the structure plans to begin accepting subscriptions. JPMorgan describes JLTXX as its second tokenised money market product on a public blockchain; both firms are now developing parallel product lines targeting the same GENIUS Act reserve market. Cryptocurrencies are highly volatile and involve significant risk. You may lose part or all of your investment. All information on Coinpaprika is provided for informational purposes only and does not constitute financial or investment advice. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions. Coinpaprika is not liable for any losses resulting from the use of this information.