JPMorgan Eyes Future Of Alternative Investing With Tokenized Fund Pilot: Report

• JPMorgan has tokenized a private-equity fund for its private-banking clients.
• The move comes ahead of the bank’s plan to launch the Kinexys Fund Flow blockchain platform.
• Regulatory clarity after the passage of the Genius Act, which supports tokenized asset adoption.

JPMorgan Chase (JPM) has reportedly tokenized one of its private-equity funds on its blockchain platform.

According to a report by The Wall Street Journal, the offering is available to JPMorgan’s wealthy private-banking clients. It noted that the move comes ahead of the bank’s plans to launch its new blockchain platform called Kinexys Fund Flow.

JPM’s stock traded flat in pre-market trade on Thursday amid weakness in the broader market, dragged down by Meta (META) and Microsoft (MSFT) after their earnings underwhelmed the market. Retail sentiment around JPMorgan on Stocktwits continued to trend in ‘bearish’ territory over the past day.

“For the alternative investments industry, it’s just a matter of time that a blockchain-based solution is going to be adopted,” Anton Pil, head of global alternative investment solutions for JPMorgan’s asset management arm, told The Journal. “It’s more about simplifying the ecosystem of alternatives and making it, frankly, a little easier to access for most investors.”

BIg Banks Hone In On Tokenization After Genius Act

Banks like JPMorgan, Goldman Sachs (GS), and BNY Mellon (BK) are all exploring tokenization, especially since the Genius Act created clearer rules for tokenized assets like stablecoins.

Tokenization could make it easier and faster to invest in alternative assets like private equity, real estate, and hedge funds — markets that have traditionally been slow, complex, and limited to institutional or ultra-wealthy investors.

The blockchain records fund ownership digitally, allowing all parties, which include fund managers, investors, and administrators, to see real-time updates on who owns what. This transparency helps avoid surprises, such as sudden “capital calls” when fund managers demand additional money from investors.

Smart contracts on the blockchain would automatically handle fund transactions, reducing paperwork and delays.

Read also: Bitcoin Dips, Triggers $800 Million In Crypto Liquidations After Powell’s December Warning

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