JPMorgan executes its first fund service transaction on its Kinexys blockchain

ChainCatcher news, according to The Block, JPMorgan is expanding the application of its Kinexys blockchain from payment and repurchase transactions to the back-office operations of the private equity market.

The bank announced on Thursday that its Asset and Wealth Management division, in collaboration with fund manager Citco, completed its first transaction using a new system called Kinexys Fund Flow. This system automates the recording of fund activities for alternative investment funds on a private blockchain. The tool tokenizes investor records and uses smart contracts to automatically transfer cash between JPMorgan's brokerage accounts and fund managers, replacing the manual reconciliation and wire transfer methods that still dominate private fund operations.

The system operates on the same permissioned Kinexys network that supports JPMorgan's tokenized deposit and payment products. Kinexys Fund Flow is expected to be fully rolled out early next year, with more features set to launch gradually before 2026. Citco stated that this technology could reduce error rates and costs across the industry, while JPMorgan views it as part of a broader initiative to modernize the distribution and servicing of alternative assets.