According to Odaily Planet Daily, JPMorgan Chase is expanding the application of its Kinexys blockchain from payments and buyback transactions to the back-office operations of the private market.

The firm announced on Thursday that its asset and wealth management division, in partnership with fund manager Citco, completed its first transaction using a new system called Kinexys Fund Flow. This system automates the recording of alternative investment fund activity 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 currently dominant in private equity operations. The system runs on the same permissioned Kinexys network that underpins 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 added by 2026.

Citco states that the technology could reduce error rates and costs across the industry, while JPMorgan Chase views it as part of a broader initiative to modernize alternative asset distribution and services. (The Block)