Major US investment bank JPMorgan has reportedly tokenized a private equity fund on its own blockchain platform and rolled 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 Thursday.
“For the alternative investment industry, it is only a matter of time before a blockchain-based solution will be introduced,” said Anton Pil, director of JPMorgan’s asset management division.
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 by which ownership of assets such as real estate, commodities or funds is digitized into digital tokens on a blockchain. Unlike traditional assets, tokenized versions offer more flexibility, such as fractional ownership or use as collateral.
According to JPMorgan’s Pil, head of global alternative investment solutions at the bank’s wealth management division, tokenized assets essentially provide an easier gateway for investors to gain exposure to an asset.
“It’s more about simplifying the ecosystem of alternatives and making it, frankly, a little bit easier to access for most investors,” he said.
Asset tokenization has become one of the major trends in recent years, with investment giants like BlackRock betting that every financial asset will be tokenized in the future.
However, JPMorgan has been attempting to tokenize assets for a while now. The banking giant has been active in tokenization and blockchain-based financial infrastructure since around 2019, when it formally launched its Onyx division and related projects.
Related: JPMorgan is reportedly planning to let customers borrow against their Bitcoin and Ether
The company rebranded Onyx as Kinexys in late 2024 with a mission to accelerate the adoption of blockchain technology and tokenization in mainstream financial services.
Cointelegraph approached JPMorgan for comment on the tokenization of a private equity fund on Kinexys, but had not received a response by publication time.
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