JPMorgan has tokenized a private-equity fund on its own blockchain

Major US Investment Bank JPMorgan has reportedly tokenized a private equity fund on its own blockchain platform, releasing the tokenized product to high-net-worth clients.

JPMorgan plans to tokenize the reported on Thursday.

“For the alternative investment industry, it is only about time that a blockchain-based solution is adopted,” JPMorgan asset management executive Anton Pil said.

According to the report, JPMorgan expects a wider rollout of the kinexys fund flow next year and hopes to tokenize additional assets such as private credit and real estate.

Easier access for investors

Tokenization of Real-World Assets (RWA) is a process of digitizing ownership of assets such as real estate, commodities or funds into digital tokens on a blockchain. Unlike traditional assets, tokenized versions offer more flexibility such as fractional ownership or use as collateral.

According to JPMorgan’s PIL, which serves as the head of global alternative investment solutions in the bank’s asset management arm, tokenized assets essentially provide a simpler gateway for investors to gain exposure to an asset.

“It’s more about easing the ecosystem of alternatives and making it, frankly, a little more accessible for most investors,” he said.