JP Morgan executes the first fund services transaction on its Kinexys blockchain

On October 31st, JPMorgan Chase is expanding the application of its Kinexys blockchain from payments and repurchase transactions to the back-office operations of private markets.
The bank said on Thursday that its asset and wealth management arm had teamed up with fund manager Citco to complete the first transaction using a new system called Kinexys Fund Flow, which automates the movement of funds from alternative investment funds on a private blockchain. The tool tokenises investor records and uses smart contracts to automatically transfer cash between JPMorgan brokerage accounts and fund managers, replacing the manual reconciliations and telegraphic transfers that still dominate Private Offering Fund operations.
The system runs on the same permissioned Kinexys network that underpins JPMorgan's tokenised deposit and payment products. Kinexys Fund Flow is expected to be fully rolled out early next year, with additional features to follow by 2026. Citco says the technology can reduce error rates and costs across the industry, while JPMorgan sees it as part of a broader drive to modernise alternative asset distribution and services.