JPMorgan Chase has begun tokenizing private equity funds on its own blockchain. This initiative targets the bank’s private banking clients and offers early access to this investment method. The full platform, called Kinexys Fund Flow, is set to launch by 2026.
Introducing the Kinexys Fund Flow Platform
The platform converts ownership stakes in private equity into digital tokens. This step integrates distributed ledger technology (DLT) with traditional finance. JPMorgan plans to expand tokenization to other alternative assets such as hedge funds, private credit, and real estate.
The main goal is to improve efficiency in fund management and transaction settlement. Tokenization could reduce costs and speed up settlements from weeks to near-instant times. The platform also aims to increase liquidity and allow fractional ownership for high-net-worth investors. Initially, it will focus on alternative investments before possibly expanding to other asset classes.
Anton Pil, head of global alternative investment solutions at JPMorgan Asset Management, said, “It’s more about simplifying the ecosystem of alternatives and making it, frankly, a little easier to access for most investors.”
A Step Toward Institutional Tokenization
Kinexys is a JPMorgan-built blockchain network connecting issuers, investors, and fund administrators. Using DLT, the platform aims to increase transparency and automation in the $13 trillion private markets industry.
The pilot tokenized a private equity fund, but JPMorgan intends to include private credit, hedge funds, and real estate next. The broader rollout is planned for 2026, as the bank advances blockchain integration in traditional finance.
Advancing Efficiency and Accessibility
This tokenization effort complements JPMorgan’s work on programmable finance. The bank introduced programmed payments through JPM Coin, enabling automatic transactions based on preset rules. This is part of the Onyx blockchain unit and removes the need for manual processing.
JPMorgan has handled $1 billion in daily transaction volume via JPM Coin. This success supports its plans for the Kinexys platform’s full launch.
The bank’s tokenization of private equity on its proprietary blockchain reflects growing institutional acceptance of blockchain technology. It signals a potential shift in how investment assets are owned and traded.
For more on JPMorgan’s tokenization project, see the Wall Street Journal report.
