JPMorgan Advances Tokenization Efforts with Kinexys for Private Equity
JPMorgan is set to launch its Kinexys Fund Flow platform for tokenizing private equity funds, targeting high-net-worth clients with a broader rollout planned for next year.
JPMorgan is progressing with the launch of its fund tokenization platform, Kinexys Fund Flow, aiming for a rollout by 2026.
Major US investment bank JPMorgan has successfully tokenized a private-equity fund using its own blockchain platform, making this product available to its affluent clients. The initial transaction was completed in partnership with Citco, a global asset-servicing solution provider.
The bank anticipates a wider availability of Kinexys Fund Flow next year, with plans to tokenize other asset types, including private credit and real estate.
More Flexible Portfolios
The process of RWA tokenization involves digitizing ownership rights of assets into blockchain-based tokens, enhancing flexibility through options like fractional ownership.
According to Anton Pil, who is the head of global alternative investment solutions at JPMorgan Asset Management, Kinexys Fund Flow represents a critical advancement in how investors allocate and handle private fund portfolios. He emphasized, “Enabling real-time tri-party settlement between fund managers, transfer agents and distributors will ultimately unlock new sources of liquidity and facilitate more adaptable portfolio construction.”
Tokenization has gained momentum in recent years, with major investment firms like BlackRock predicting that all financial assets will undergo tokenization in the future.
Historically, JPMorgan has actively pursued asset tokenization projects. The bank’s involvement with blockchain technology and financial infrastructure initiatives began around 2019 with the launch of its Onyx division and related projects. In late 2024, Onyx was rebranded to Kinexys with the goal of integrating blockchain and tokenization into mainstream financial services.
Related: JPMorgan plans to allow clients to borrow against Bitcoin and Ether
Cointelegraph reached out to JPMorgan for insights on its private-equity fund tokenization on Kinexys but had not received a reply by the time of publication.
