JPMorgan Chase has taken a major step toward digitising private markets by tokenizing a private equity fund on its proprietary blockchain platform, Kinexys Fund Flow, according to a report by the Wall Street Journal.

The initiative, the first of its kind by the bank, allows its private wealth clients to hold digital tokens representing ownership stakes in the fund, simplifying access, settlement, and recordkeeping for alternative investments.

The move precedes a wider rollout of the Kinexys platform in 2026, which aims to extend tokenization to additional alternative investment strategies including real estate, infrastructure, and private credit.

Tokenization involves creating digital representations of real-world assets on blockchain networks, enabling more efficient transactions and potentially expanding access to traditionally illiquid asset classes.

The launch comes amid a growing institutional pivot toward blockchain adoption following the U.S. government’s passage of the Genius Act, which established a framework for stablecoins and accelerated regulatory clarity around digital assets.

Major peers including Goldman Sachs and BNY Mellon have also announced tokenization initiatives for money-market funds managed by BlackRock, Fidelity, and their own asset management units, signalling intensifying competition among global banks to lead in digital asset infrastructure.

JPMorgan’s latest move positions it at the forefront of this transformation, as banks and private equity managers increasingly explore blockchain-based fund structures to meet institutional investors’ demand for faster settlement, improved liquidity, and lower administrative costs.

The Kinexys platform, once fully deployed, could pave the way for greater investor participation in private markets through tokenized vehicles, a step that could significantly reshape the alternative investment landscape.

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