JPMorgan is moving closer to launching its blockchain-powered fund tokenization platform, Kinexys Fund Flow, with a broader rollout expected in 2026. According to a report by The Wall Street Journal, the bank has already tokenized a private-equity fund and offered it to select high-net-worth clients.
The initiative marks a significant milestone in JPMorgan’s ongoing efforts to modernize financial infrastructure using blockchain technology. The firm plans to extend Kinexys Fund Flow’s capabilities beyond private equity to include hedge funds, private credit, and real estate in the coming year.
For the alternative investments industry, a blockchain-based solution is only a matter of time, a person familiar with the project told the outlet.
Simplifying access to alternative investments
Real-world asset (RWA) tokenization converts traditional investments such as real estate, commodities, or private funds into digital tokens on a blockchain, enabling new use cases like fractional ownership and collateralized borrowing.
According to George Pil, head of global alternative investment solutions at JPMorgan Asset Management, the platform aims to make complex asset classes more accessible.
It’s more about simplifying the ecosystem of alternatives and making it easier for investors to access.
Tokenization also allows faster settlement and improved transparency for investors, reducing administrative friction that typically accompanies private fund investments.
Part of a broader institutional shift
JPMorgan has been exploring asset tokenization since 2019, when it launched its Onyx division focused on blockchain infrastructure for wholesale banking. The firm rebranded Onyx to Kinexys in late 2024 to emphasize its mission of bringing blockchain-based products to mainstream finance.
Industry peers like BlackRock have made similar bets, with CEO Larry Fink predicting that “every financial asset will eventually be tokenized.”
By advancing Kinexys Fund Flow, JPMorgan is positioning itself at the center of that transformation where traditional asset management meets digital finance.