JPMorgan said Thursday it has launched a new blockchain-based tool that streamlines the distribution and servicing of alternative investment funds as the bank moves deeper into tokenization.
The platform, called Kinexis Fund Flow and developed by Kinexis, the digital assets arm of JPMorgan Bank, aims to give fund managers, transfer agents and distributors a shared, real-time view of investor activity while reducing manual reconciliations and delays in capital movement.
The first live transactions with the tool involved several JPMorgan business lines: Asset Management, Private Bank and Kinexis Digital Assets. Fund administrator Citco also participated.
This is the latest step in JPMorgan’s broader effort to apply blockchain technology and tokenization to traditional finance, a trend that is gaining popularity among major financial institutions. The bank has been an early mover, developing JPM Coin in 2019 and launching its blockchain unit, Onyx, in 2020. That division, now integrated under Kinexis, conducts blockchain-based repo trades, cross-border payments and token asset settlements with partners including BlackRock and Siemens.
According to a press release shared with CoinDesk, the bank is planning a broader rollout of Kinexis Fund Flow early next year.
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