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JPMorgan Executes First Fund Service Transaction on Kinexys Blockchain
Summary: JPMorgan is expanding the application of its Kinexys blockchain from payments and repurchase transactions to the backend operations of the private fund market, according to The Block. The bank announced on Thursday that its Asset and Wealth Management division, in collaboration with fund administrator Citco, completed the first transaction using a new system called Kinexys ...
JPMorgan is expanding the application of its Kinexys blockchain from payments and repurchase transactions to the backend operations of the private fund market, according to The Block. The bank announced on Thursday that its Asset and Wealth Management division, in collaboration with fund administrator Citco, completed the first transaction using a new system called Kinexys Fund Flow. This system automates the recording of fund activities for alternative investment funds on a private blockchain. The tool tokenizes investor records and uses smart contracts to automatically transfer cash between JPMorgan brokerage accounts and fund managers, replacing the manual reconciliation and wire transfer methods still prevalent in private fund operations. The system operates on the same licensed Kinexys network that supports JPMorgan's tokenized deposit and payment products. Kinexys Fund Flow is expected to be fully rolled out early next year, with more features to be launched by 2026. Citco stated that this technology can reduce industry-wide error rates and costs, while JPMorgan sees it as part of a broader initiative to modernize the distribution and servicing of alternative assets.
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