JPMorgan Converts Private Equity Fund into Tokens on Its Proprietary Blockchain

Prominent US investment bank JPMorgan has launched a tokenized private-equity fund on its proprietary blockchain platform, making the product available to its high-net-worth clients.

The private banking and asset management sectors of JPMorgan have completed their initial transaction on the forthcoming fund tokenization platform, Kinexys Fund Flow, as stated in an announcement from the company shared with Cointelegraph on Thursday.

This transaction was carried out in collaboration with Citco, a global provider of various asset-servicing solutions.

JPMorgan anticipates a wider launch of Kinexys Fund Flow next year, with plans to tokenize more assets, including private credit and real estate.

Enhanced portfolio flexibility

Real-world asset (RWA) tokenization digitizes ownership of assets such as real estate, commodities, or funds into digital tokens on a blockchain. Tokenized assets offer increased flexibility compared to traditional assets, such as fractional ownership or the ability to use them as collateral.

Anton Pil, head of global alternative investment solutions at JPMorgan’s asset management division, emphasized that Kinexys Fund Flow marks a significant advancement in how investors manage and allocate private fund portfolios.

“Facilitating real-time tri-party settlement among fund managers, transfer agents, and distributors will ultimately create new liquidity sources and allow for more flexible portfolio construction,” he stated.