Blockchain Opens Up Private Markets as JPMorgan Converts Funds into Tokens

JPMorgan Chase has made a notable advancement in alternative asset investment by tokenizing a private-equity fund on its own blockchain system, representing the initial stage of what the bank sees as a wider overhaul of the financial sector. This project, part of the Kinexys Fund Flow platform, is designed for affluent clients and seeks to make it easier to invest in typically illiquid assets such as private equity, hedge funds, and real estate by utilizing blockchain, according to a

. The platform, which adopted the Kinexys name after rebranding from JPMorgan's Onyx division in late 2024, is projected to broaden its tokenization services to more asset types by 2026, reported.

Anton Pil, who leads global alternative investment solutions at JPMorgan Asset Management, stressed that blockchain adoption in alternative investments is inevitable. "For the alternative investments industry, it's just a matter of time that a blockchain-based solution is going to be adopted," he told The Wall Street Journal, as referenced in a

, noting that tokenization makes processes more efficient, lowers barriers, and opens up opportunities to a broader investor base. The technology supports fractional ownership, immediate transfers, and the use of tokens as collateral, helping to resolve persistent inefficiencies in private markets, the Coinotag report added.

This development is in line with larger trends in the industry.

is the only institution exploring tokenization: BlackRock has forecast that all financial assets could one day be tokenized, and other major players such as Goldman Sachs and Bank of New York Mellon have also launched blockchain-based initiatives for money-market funds, according to the StockTwits article. Regulatory changes, including the Genius Act signed by President Trump in 2023, which set out rules for stablecoins, have further fueled institutional interest in tokenization, the same article noted.

The Kinexys Fund Flow platform digitizes fund ownership using smart contracts, providing real-time tracking of holdings and transactions. For instance, tokenized funds remove uncertainty around capital calls—requests for investors to provide committed funds—by offering a transparent ledger of contributions and obligations, as explained in the StockTwits coverage. The platform’s planned expansion into private credit, real estate, and hedge funds could unlock trillions in liquidity by enabling continuous trading and worldwide access, according to the Coinotag report.

Although the initial phase is aimed at wealthy clients, JPMorgan ultimately intends to make the platform more widely accessible. Pil pointed out that tokenization "simplifies the ecosystem of alternatives and makes it a little easier to access for most investors," potentially narrowing the divide between institutional assets and the retail market, as reported by Markets.com. This vision is echoed by industry experts, who believe that tokenized assets could transform asset management by cutting out intermediaries and increasing transparency, the Coinotag report added.

Nonetheless, there is still caution among critics and regulators. Most banks, including JPMorgan, use private blockchain networks with limited access, which restricts the full decentralization potential of the technology, the StockTwits article observed. Furthermore, regulatory guidance on tokenized assets is still inconsistent, though the Genius Act marks progress toward standardization, the same coverage noted.

As JPMorgan gets ready for the 2026 launch of Kinexys Fund Flow, its move into tokenization highlights a major change in how traditional finance is embracing blockchain. With industry competitors and regulators observing closely, the outcome of this project could set a benchmark for the future of asset management—and demonstrate the broader value of blockchain technology beyond cryptocurrencies, the Coinotag report concluded.