Major US investment bank JPMorgan has reportedly tokenized a private equity fund on its own blockchain platform, Kinexys, rolling 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, according to a report in The Wall Street Journal.
Anton Pil, an executive in JPMorgan's asset management arm, stated, "For the alternative investments industry, it’s just a matter of time that a blockchain-based solution is going to be adopted." JPMorgan anticipates a broader rollout of Kinexys Fund Flow next year and expects to tokenize additional assets like private credit and real estate.
Real-world asset (RWA) tokenization involves digitizing ownership of assets such as real estate, commodities, or funds into digital tokens on a blockchain. Unlike traditional assets, tokenized versions offer increased flexibility, including fractional ownership and use as collateral.
According to Pil, who serves as head of global alternative investment solutions at the bank's asset management division, tokenized assets provide a more straightforward avenue for investors to gain exposure. "It’s more about simplifying the ecosystem of alternatives and making it, frankly, a little easier to access for most investors," he explained.
Asset tokenization has emerged as a key trend in recent years, with investment giants like BlackRock predicting that all financial assets will eventually be tokenized. JPMorgan has been actively exploring asset tokenization for some time, launching its Onyx division and related projects around 2019.
The company rebranded Onyx to Kinexys in late 2024, with a focus on accelerating the adoption of blockchain technology and tokenization within mainstream financial services. Cointelegraph has reached out to JPMorgan for comment on the tokenization of the private equity fund on Kinexys, but no response was received by publication time.
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