Kinexys Fund Flow – a new offering from Kinexys Digital Assets – enables the seamless distribution and servicing of alternative investment funds.

Key takeaways:

• Kinexys Digital Assets’ new offering represents a potentially transformative change to alternative investment fund servicing, enabling streamlined distribution and improved client-friendly features.
• Streamlining operations and automating capital activities enable alternative investment managers to deliver greater efficiency and real-time transparency for clients and distributors alike.
• Initiative underscores the strength of collaboration across our businesses—the kind of collaboration that defines J.P. Morgan at its best – and additional features to help improve investors’ outcomes and experience are planned to be rolled out throughout 2026.

J.P. Morgan Private Bank, J.P. Morgan Asset Management and Citco have commenced the first transaction on a new solution from Kinexys by J.P. Morgan, the firm’s industry-leading blockchain business unit.

The Kinexys Fund Flow solution collects, harmonizes and records investor register and transactional data on the Kinexys Digital Assets private, permissioned blockchain network; providing granular transparency into investor, fund and capital activity data, and facilitating the funding of capital calls and distributions using Kinexys by J.P. Morgan’s scalable Blockchain Deposit Account network, Kinexys Digital Payments.

By streamlining operations and automating capital activities, Kinexys Fund Flow could allow J.P. Morgan Private Bank clients to access world-class alternative investment strategies without the cost of unnecessary feeder funds or compromises on an open-end versus closed-end fund structure.

Jed Laskowitz, Global Head of Private Markets and Customized Solutions, J.P. Morgan Asset Management, said,  “We’re excited to work with our colleagues at Kinexys by J.P. Morgan to launch our first private fund tokenized solution, with a broad rollout expected early next year. By streamlining operations and automating capital activities, J.P. Morgan Asset Management is delivering greater efficiency and real-time transparency —creating a more connected investment experience for our clients.”

Anton Pil, Head of Global Alternative Investment Solutions for J.P. Morgan Asset Management, said, “The Kinexys Fund Flow solution – developed in-house at J.P. Morgan – is an important step in transforming how our clients allocate and manage private fund portfolios.  Enabling real-time tri-party settlement between fund managers, transfer agents and distributors will ultimately unlock new sources of liquidity and more flexible portfolio construction. Working across the Commercial & Investment Bank, the Private Bank, and Asset Management to develop this capability really showcases the power of J.P. Morgan.”

The alternative investment industry faces a number of challenges as siloed data systems, legacy payment rails and manual reconciliations limit scalability at a time when asset managers and distributors are trying to better serve individual investors. Tokenization offers a potential solution to much of this friction, which could save thousands of hours and limit errors, while providing a foundation for novel features, which reduce cash drag and eliminate inefficient investment structures.

Albert Bauer, Chief Technology Officer, the Citco group of companies (Citco), said, “We are delighted to be part of the launch of Kinexys Fund Flow, which aligns with Citco’s ethos to streamline alternative investment fund operations and automate complex financial processes through innovative technology. This transformative solution addresses the industry’s longstanding challenges of siloed data systems and manual reconciliations that have limited scalability. By leveraging blockchain technology and smart contracts, it improves the experience and outcomes for investors while significantly reducing operational inefficiencies. As a pioneer of asset servicing solutions to the funds industry, this is a step to democratizing access to world-class investment strategies and building a future where alternative investments can be accessed with minimal operational burdens.”

On Kinexys Fund Flow, tokenization of the investor register and transactional data enables near-instant settlement. Fund managers, transfer agents and distributors maintain a shared ‘at-the-source’ view of individual holdings as well as the real-time funding status of their capital calls or subscriptions. Smart contracts and programmable payments provide an automated way to move cash from individual investor brokerage accounts at J.P. Morgan Private Bank to fund managers with full transparency, greater speed and without the need to rely on wire services.

Dennis Cristallo, Head of Wealth Management for Kinexys Digital Assets at Kinexys by J.P. Morgan, said, “The forward-thinking mindset at J.P. Morgan Asset & Wealth Management and Citco was instrumental in launching Kinexys Fund Flow. Kinexys Digital Assets has a thriving ecosystem of some of the world’s largest institutions, with a nearly five year track record of building blockchain applications and settling transactions securely, efficiently and at scale. Our ultimate goal is to use this technology to improve the experience and outcome for investors. Beyond efficiency gains, we are actively working towards a future where alternatives can be accessed with minimal cash drag and operational burden.”

Kinexys Digital Assets (KDA) is a private, permissioned, blockchain-based platform from Kinexys by J.P. Morgan. KDA is a leader in scalable, bank-led asset tokenization, enabling delivery-versus-payment settlement of assets versus cash around the clock and processing billions of dollars in tokenized assets daily for the world’s largest institutions^[1] since inception.

^[1] Cumulative transactions (USD) across Kinexys Digital Assets products since inception.

Source: JP Morgan