Automating Capital Activity with Smart Contracts

JPMorgan is expanding the use of its Kinexys blockchain, moving beyond payments and repo trading to streamline the operational processes of private markets. The bank announced its asset and wealth management divisions, in collaboration with fund administrator Citco, have successfully completed the first transaction on a new system called Kinexys Fund Flow.

This new tool is designed to automate and record capital activity for alternative investment funds on a private blockchain. The system works by tokenizing investor records and leveraging smart contracts to automatically transfer cash between JPMorgan brokerage accounts and fund managers. This approach replaces the manual reconciliations and wire transfers that are still common in private-fund operations, aiming to significantly reduce manual work.

The launch of Kinexys Fund Flow builds on JPMorgan’s earlier blockchain initiatives, including an on-chain repo tool also powered by the Kinexys platform. This latest development signals the bank’s continued commitment to integrating blockchain technology into core financial infrastructure.