JPMorgan said on Thursday it had unveiled a new blockchain-based tool that streamlines the distribution and servicing of alternative investment funds as the bank deepens tokenization.
The platform, called Kinexys Fund Flow and developed by the bank’s digital assets arm, Kinexys, by JPMorgan, aims to provide fund managers, transfer agents and distributors with a shared real-time view of investor activity, while reducing manual reconciliation and reducing delays in the movement of capital.
The first live transaction with the tool involved multiple JP Morgan business lines: Asset Management, Private Banking and Kinexys Digital Assets. The Citco fund manager also participated.
This is the latest step in JPMorgan’s broader push to apply blockchain technology and tokenization to traditional finance, a trend that is gaining traction among major financial institutions. The bank has been one of the first to act, developing JPM Coin in 2019 and launching its blockchain unit, Onyx, in 2020. That division, now integrated under Kinexys, conducted blockchain-based repo operations, cross-border payments and tokenized asset settlements with partners such as BlackRock and Siemens.
The bank plans a broader launch of Kynexis Fund Flow early next year, according to a press release shared with CoinDesk.
Read more: IBM unveils digital asset platform as demand for tokenization and stablecoins grows
