JPMorgan executes first fund-servicing transaction on its Kinexys blockchain

JPMorgan is extending its Kinexys blockchain beyond payments and repo trading into the back-office plumbing of private markets.

The bank said Thursday that its asset and wealth management divisions, together with fund administrator Citco, completed the first transaction using Kinexys Fund Flow, a new system that automates and records capital activity for alternative investment funds on a private blockchain.

The tool tokenizes investor records and uses smart contracts to move cash automatically between JPMorgan brokerage accounts and fund managers, replacing the manual reconciliations and wire transfers that still dominate private-fund operations. The system runs on the same permissioned Kinexys network that underpins JPMorgan’s tokenized-deposit and payments products.

A broader rollout of Kinexys Fund Flow is expected early next year, with additional features slated to come online through 2026. Citco said the technology could cut errors and costs across the industry, while JPMorgan described it as part of a broader effort to modernize how alternative assets are distributed and serviced.

Changing tune

The expansion reflects a shift in tone from JPMorgan’s top brass, who for years voiced skepticism toward crypto but are now embracing blockchain infrastructure in practice.

Speaking Tuesday at the Future Investment Initiative conference in Riyadh, CEO Jamie Dimon said, “Crypto is real. Smart contracts are real. It will be used by all of us to facilitate better transactions and customer service.”

The move follows the August debut of Kinexys’ on-chain intraday repo solution, which lets institutions swap cash and securities in real time.