JPMorgan Tokenizes Private-Equity Fund On Its Own Blockchain

Major US investment bank JPMorgan has reportedly tokenized a private-equity fund on its own blockchain platform, rolling out the tokenized product to its high-net-worth clients.

JPMorgan plans to tokenize assets, such as hedge funds, through its upcoming fund tokenization platform, Kinexys Fund Flow, The Wall Street Journal reported on Thursday.

“For the alternative investments industry, it’s just a matter of time that a blockchain-based solution is going to be adopted,” JPMorgan’s asset management arm’s executive Anton Pil said.

According to the report, JPMorgan expects a broader rollout of Kinexys Fund Flow next year and expects to tokenize additional assets such as private credit and real estate.

Easier access for investors

Real-world asset (RWA) tokenization 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 usage as collateral.

According to JPMorgan’s Pil, who serves as head of global alternative investment solutions at the bank’s asset management arm, tokenized assets essentially provide a simpler gateway for investors to get exposure to an asset.

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