JPMorgan Chase tokenized a private-equity fund on its Kinexys blockchain platform, making the offering available to wealthy clients served by its private bank. The bank announced the development on Thursday.
The first live transaction using the new Kinexys Fund Flow system involved JPMorgan Asset Management, the Private Bank, and Kinexys Digital Assets, along with fund administrator Citco, according to the Wall Street Journal. The transaction was completed on the bank’s private, permissioned blockchain network.
First Live Transaction Completed
The Kinexys Fund Flow platform tokenizes investor records. It utilizes smart contracts to automate the transfer of funds between JPMorgan brokerage accounts and fund managers. The system replaces manual reconciliations and wire transfers that currently dominate private-fund operations.
JPMorgan expects a broader rollout of Kinexys Fund Flow in early 2026, with additional features to be introduced throughout the year. Citco said the technology could reduce errors and costs across the industry. At the same time, JPMorgan described it as an effort to modernize the distribution and servicing of alternative assets.
Automating Private Fund Operations
JPMorgan CEO Jamie Dimon spoke at the Future Investment Initiative conference in Riyadh on Oct. 28, stating that “crypto is real” and that smart contracts will be utilized to facilitate more efficient transactions and enhanced customer service. The comments represent a shift from his earlier skepticism toward digital currencies.
The launch follows President Trump’s signing of the Genesis Act this summer, which created a regulatory framework for stablecoins. In July, Goldman Sachs and the Bank of New York Mellon announced a partnership to launch digital tokens for money market funds.
JPMorgan launched its on-chain intraday repo solution through Kinexys in August. The bank developed JPM Coin in 2019 and launched its Onyx blockchain unit in 2020, now integrated under Kinexys.
The bank recently announced plans to use Bitcoin and Ethereum as collateral for institutional loans. It launched a proof-of-concept for a deposit token on Base. The moves come as competitors, including a Citi and Coinbase partnership, work to bridge traditional banking and blockchain finance.
Read original story JPMorgan Tokenizes Private Equity Fund as Dimon Declares ‘Crypto is Real’ by Zoran Spirkovski at Coinspeaker.com
