JPMorgan said Thursday it debuted a new blockchain-based tool that streamlines the distribution and delivery of alternative investment funds as the bank pushes deeper into tokenization.
The platform, called Kinexys fund flow and developed by JPMorgan’s digital asset arm Kinexys, aims to provide fund managers, transfer agents and distributors with a shared, real-time view of investor activity while reducing manual reconciliation and cutting delays in capital movement.
The first live transaction with the tool involved multiple business lines of JP Morgan: asset management, the private bank and digital digital assets. Fund administrator Citco also participated.
It’s the latest step in JPMorgan’s broader push to apply blockchain tech and tokenization to traditional finance, a trend that’s gaining traction among major financial institutions. The bank has been an early mover, developing JPM coin in 2019 and launching its blockchain unit, Onyx, in 2020. That division, now incorporated under kinexys, has carried out blockchain-based repo trading, cross-border payments and tokenized asset settlement with partners including Blackrock and Siemens.
The bank plans a wider rollout of the Kynexis fund flow early next year, according to a press release shared with Coindesk.
Read more: IBM opens digital asset platform as demand for tokenization, stablecoins grows
