JPMorgan executes first fund-servicing transaction on its Kinexys blockchain

JPMorgan is expanding the use of its Kinexys blockchain beyond payments and repo trading into the back-office operations of private markets. The bank's asset and wealth management divisions, alongside fund administrator Citco, successfully executed the first transaction using Kinexys Fund Flow, a new system designed to automate and record capital activity for alternative investment funds on a permissioned blockchain.

This tool tokenizes investor records and utilizes smart contracts to automatically move cash between JPMorgan brokerage accounts and fund managers, replacing traditional manual reconciliations and wire transfers common in private funds. The system leverages the same Kinexys network used for JPMorgan's tokenized-deposit products.

A broader rollout of Kinexys Fund Flow is anticipated in early 2026, with further features planned through 2026. Citco suggests the technology can reduce industry errors and costs, aligning with JPMorgan's goal to modernize alternative asset servicing. This move follows a shift in tone from JPMorgan leadership, including CEO Jamie Dimon, who recently acknowledged that "Crypto is real" and will facilitate better transactions.

(Source：The Block)