JPMorgan said Thursday it has launched a new blockchain-based tool that streamlines the distribution and servicing of alternative investment funds as the bank deepens tokenization.
The platform, called Kinexys Fund Flow and developed by Kinexys by JPMorgan, the bank’s digital assets arm, aims to provide fund managers, transfer agents and distributors with a shared, real-time view of investor activity while reducing manual reconciliations and delays in capital movements.
The first live transaction with the tool involved several JP Morgan businesses: Asset Management, Private Banking and Kinexys Digital Assets. The fund’s administrator, Citco, also participated.
This is the latest step in JPMorgan’s broader move to apply blockchain technology and tokenization to traditional finance, a trend that is gaining traction among large financial institutions. The bank was an early adopter of JPM Coin in 2019 and launched its blockchain unit, Onyx, in 2020. This division, now integrated under Kinexys, has conducted blockchain-based repo operations, cross-border payments and settlements of tokenized assets with partners including BlackRock and Siemens.
The bank plans a broader rollout of Kynexis Fund Flow early next year, according to a press release shared with CoinDesk.
Read more: IBM Unveils Digital Asset Platform as Demand for Tokenization and Stablecoins Grows
