JPMorgan said Thursday it had debuted a new blockchain-based tool that streamlines the distribution and servicing of alternative investment funds as the bank pushes deeper into tokenization.
Dubbed Kinexys Fund Flow and developed by the bank’s digital asset arm Kinexys by JPMorgan, the platform aims to provide fund managers, transfer agents and distributors with a common real-time view of investor activity while reducing manual reconciliation and reducing delays in capital movements.
The first direct transaction with the tool involved several JP Morgan business lines: Asset Management, Private Bank and Kinexys Digital Assets. Fund manager Citco 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 large financial institutions. The bank has been an early mover, developing JPM Coin in 2019 and launching its blockchain unit, Onyx, in 2020. The division, now integrated under Kinexys, conducted blockchain-based repo trades, cross-border payments and tokenized asset settlements with partners including BlackRock and Siemens.
The bank plans a wider rollout 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, Stablecoins Grows
