Turning Point in Blockchain Financial Infrastructure: How JPMD and MONY Indicate Structural Changes in 2025

The Scale of Finance Accelerates On-Chain Adoption

By the second half of 2025, commercial deposits, which were traditionally confined within closed banking internal systems, have entered the stage of actual operational deployment on public blockchains. The support of institutional-level settlement activities by JPMorgan Chase’s tokenized product JPM Coin (JPMD) on Coinbase’s Ethereum Layer 2 network Base signifies a historic shift in financial infrastructure.

Underlying this development is the overwhelming scale of the balance sheet. According to JPMorgan Chase’s 2024 annual report, total deposits have reached $2.406032 trillion, and even a small proportion of deposit-based payments migrating to blockchain would surpass the entire current market for tokenized government bonds and money market funds. Federal Reserve statistics indicate that as of December 2025, the total deposits across the US commercial banking system amount to $18.5185793 trillion.

Integration of Payment Efficiency and Compliance

The fundamental difference between deposit tokens and stablecoins lies in their legal nature. While stablecoins are assets outside the banking system, deposit tokens represent direct claims on commercial bank deposits and are naturally integrated into existing regulatory frameworks and accounting standards.

With the implementation of JPMD, this theoretical distinction has been translated into practical operations. According to disclosures on November 12, 2025, JPMD has transitioned to full operational status on Base, with Mastercard, Coinbase, and B2C2 participating in the initial trial transactions, establishing a 24/7 on-chain settlement mechanism. Whitelisted customers can complete payments, margin settlements, and collateral transfers on-chain.

Completion of Financial Structure through Revenue Asset Integration

Traditional on-chain fund structures faced the issue of lacking reliable revenue sources. This challenge was resolved with the announcement of MONY on December 15, 2025. JPMorgan Chase Asset Management’s My OnChain Net Yield Fund (MONY) is the first tokenized money market fund issued on the public Ethereum network.

MONY is structured as a 506©private placement fund, open to qualified investors, with assets limited to US Treasuries and repo transactions. JPMorgan Chase’s initial investment of $100 million enables investors to directly hold dollar-denominated revenue assets on-chain within a compliance framework.

Quantitative Progress in RWA Market Demonstrates Qualitative Shift

Market data clearly shows that RWA has moved beyond the proof-of-concept stage. According to RWA.xyz’s aggregation, as of December 25, 2025, the distributed asset value of on-chain RWA is $19.1 billion, with a total representative asset value of $414.66 billion, involving 592,638 holders.

In the government debt asset segment closest to cash management functions, the total on-chain value of tokenized government bonds has reached $9 billion, with 62 asset types held by 59,214 owners. The 7-day annualized yield stands at 3.82%, nearly equivalent to traditional cash management tools and functional attributes.

Necessity of Efficiency Strategies in the Financial System

The concentration of these changes in 2025 is no coincidence but a response to the structural demands of the banking system. For a system exceeding $18 trillion in scale, challenges such as improving settlement efficiency, supporting 24/7 operations, and increasing collateral reuse rates serve as incentives to adopt blockchain technology.

The emergence of deposit tokens and tokenized money market funds should be understood not as technological experiments but as pragmatic choices made by traditional finance to optimize efficiency and structure.

Integration Process of On-Chain Financial Infrastructure

Viewing JPMD and MONY together, it becomes clear that this is not merely individual product launches but the construction of a well-defined institutional-level on-chain financial structure.

Deposit tokens convert bank liabilities into an on-chain cash layer capable of 24/7 settlement, while tokenized money market funds supply low-risk USD revenue assets within the same compliant environment, and the expanding pool of tokenized government bonds functions as collateral and liquidity backbone—these elements are integrated to complete the on-chain financial infrastructure.

This series of movements from November to December 2025 sends a clear signal: real-world assets are gradually evolving from “tokenization targets” to “components of a financial system that is continuously operated within a public blockchain environment,” and are being incorporated into institutional-level clearing, cash management, and asset allocation logic.