Bank deposit payments on the blockchain to become a reality by 2025—JPMD and MONY accelerate the transformation of financial infrastructure

The Necessity of On-Chain Financial Systems

The structural challenges faced by the US commercial banking system are clear. According to the Federal Reserve’s H.8 statistics, as of December 10, 2025, the total deposits of US commercial banks have reached $18.5 trillion. Within this enormous pool of funds, technological solutions that improve settlement efficiency, enable 24/7 operations, and optimize collateral reuse are no longer optional but inevitable.

From November to December 2025, the new services announced successively by Morgan Stanley and its affiliates suggest the beginning of a transformation in financial infrastructure driven by this inevitability.

Tokenization of Deposits: Unlocking the Final System Realm

Traditionally, on-chain tokenization of real-world assets (RWA) has been limited to tokenized government bonds and money market funds. However, the most important assets in the financial system—commercial bank deposits—have always been isolated within closed systems and subject to strict regulations.

This boundary was broken in December 2025. JPMorgan Chase developed a bank deposit-based token called “JPMD,” which began full-scale operation on Coinbase’s Ethereum Layer 2 network, Base.

Unlike previous test environments or permissioned networks, JPMD supports actual institutional-level settlement activities on Base. whitelisted clients can complete practical financial transactions such as on-chain payments, margin settlements, and collateral transfers. This marks the first time that global financial institutions’ balance sheet deposits can function in a public blockchain environment, representing a historic turning point in on-chainization.

According to disclosures on November 12, 2025, JPMD has already entered full operational mode, completing initial transaction trials involving Mastercard, Coinbase, and B2C2. This is not merely a technical experiment but indicates that the construction of on-chain financial infrastructure capable of supporting real transaction functions has already begun.

Why Deposit Tokens Will Surpass Stablecoins

The difference between deposit tokens and stablecoins is more fundamental than it appears.

Stablecoins have long functioned as on-chain cash equivalents, but from the perspective of regulated financial institutions, they have always been assets outside the banking system. There have been long-term structural differences in issuer credit, reserve transparency, and regulatory compliance.

In contrast, the fundamental advantage of deposit tokens lies in representing a direct claim on commercial bank deposits. They are naturally integrated into existing regulatory frameworks, accounting standards, and audit mechanisms. This is not just a theoretical discussion; it is realized in practice through 24/7 operation supporting actual on-chain settlement mechanisms.

Integrating Revenue Assets On-Chain—The Rise of MONY

If deposit tokens solve settlement layer issues, the lack of revenue assets was another significant weakness in on-chain financial structures.

This challenge was addressed on December 15, 2025, when Morgan Stanley Asset Management announced the tokenization of a money market fund called “My OnChain Net Yield Fund (MONY),” explicitly issuing it on the public Ethereum network.

MONY is structured as a private fund accessible only to qualified investors. Asset allocation is limited to repurchase agreements collateralized by US Treasuries and government bonds, with Morgan Stanley committing an initial investment of $100 million. This structure allows investors to directly hold dollar-denominated yield assets on-chain within a fully compliant framework.

Scale Determines the Significance of the Financial System

The importance of the system is reflected in its numbers.

According to JPMorgan Chase’s 2024 Form 10-K annual report, total deposits as of December 31, 2024, amounted to $2.406 trillion. Even a small percentage of this enormous fund moving into blockchain infrastructure would surpass the total size of most current on-chain RWA products.

In contrast, tokenized government bonds and money market funds are growing rapidly, but their total on-chain value remains in the hundreds of billions of dollars. Commercial bank deposits are the primary assets operated within a trillion-dollar financial system.

The Current State of the On-Chain RWA Market

Quantitative data proves that RWAs have moved beyond the proof-of-concept stage.

Based on data from RWA.xyz, as of December 25, 2025, the on-chain allocated asset value is $19.1 billion, the represented asset value is $414.66 billion, and the number of asset holders is 592,638.

In the government bond asset domain—arguably the closest to on-chain cash management—the total on-chain value of tokenized government bonds reaches $9 billion, covering 62 assets and 59,214 holders, with an annualized yield of 3.82%. The functional equivalence with traditional cash management tools is gradually being established.

On-Chain as Financial Infrastructure

By observing JPMD and MONY together, it becomes clear that these are not isolated product launches but indicative of a deliberate construction of an institutional-level on-chain financial pathway.

Deposit tokens convert bank liabilities into an on-chain cash layer that can settle 24/7. Tokenized money market funds provide low-risk, compliant yield assets within the same environment. An expanding pool of tokenized government bonds supports collateral and liquidity.

Through the interaction of these three layers, on-chain is evolving from merely a “tokenizable target” to a “component of a continuously operated institutional-level financial system on a public blockchain environment.” The series of developments from November to December 2025 send a clear signal of how real-world assets are being integrated into institutional settlement, cash management, and asset allocation logic.