On Thursday, JPMorgan announced the launch of a new blockchain-based tool designed to enhance the distribution and servicing of alternative investment funds as the bank delves further into tokenization.
The platform, known as Kinexys Fund Flow and created by the bank’s digital asset division, Kinexys by JPMorgan, seeks to provide fund managers, transfer agents, and distributors with a unified, real-time overview of investor activities, while minimizing manual reconciliation and expediting capital movement.
The inaugural live transaction utilizing the tool involved various J.P. Morgan business sectors: Asset Management, the Private Bank, and Kinexys Digital Assets. Fund administrator Citco was also involved.
This initiative marks the latest phase in JPMorgan’s extensive efforts to leverage blockchain technology and tokenization within traditional finance, a movement gaining momentum among leading financial institutions. The bank has been a frontrunner in this area, having developed JPM Coin in 2019 and establishing its blockchain unit, Onyx, in 2020. This division, now part of Kinexys, has executed blockchain-based repo trades, cross-border payments, and tokenized asset settlements with partners like BlackRock and Siemens.
According to a press release shared with CoinDesk, the bank plans to expand Kynexis Fund Flow early next year.
Read more: IBM Unveils Digital Asset Platform as Demand for Tokenization, Stablecoins Grows
