JPMorgan Tokenizes Private-Equity Fund on Its Blockchain

The service, announced Thursday, will be available to the bank’s most affluent customers through its private banking arm.

This is JPMorgan’s first major step toward widespread deployment of its fund tokenization platform in 2026. This shows how one of the world’s largest financial institutions is beginning to digitize its real-world assets.

The first step to digital money management

For many investors, private equity funds are known for their exclusivity and long lock-up periods. By using blockchain, JPMorgan aims to make access to such assets smoother, more transparent, and more efficient. Simply put, tokenization means changing the ownership of an asset into digital tokens that are recorded on a blockchain. This allows stocks within a fund to be traded, tracked and settled more quickly and with fewer intermediaries than traditional systems.

The bank’s decision to start with private equity funds is strategic. These funds typically have complex ownership structures and long investment horizons. This makes them ideal candidates for blockchain secure and transparent record-keeping. Tokenization allows investors to see their holdings in real-time and allows transactions that once took days to settle in minutes.

The experiment is part of JPMorgan’s ongoing digital asset efforts. The bank already operates its own blockchain network, Onyx, which supports tokenized deposits and payments at scale. Currently, JPMorgan is expanding its blockchain ecosystem from payments to investment products as it moves to tokenize its funds.

Learn more about tokenizing bank assets

Securitize and BNY Mellon have partnered to launch a tokenized fund backed on-chain with AAA-rated collateralized loan obligations (CLOs). This innovative structure allows investors to access high-quality, traditionally complex fixed income products through digital tokens, making the process faster, more transparent, and easier to trade.

By combining Securitize’s expertise in compliant tokenization with BNY Mellon’s custody and settlement infrastructure, the fund will bring institutional assets to a wider range of investors. It also leverages the efficiency and security of blockchain.

JPMorgan Tokenizes Private-Equity Fund on Its Blockchain

Disclaimer

The information provided by Altcoin Buzz does not constitute financial advice. It is for educational, entertainment, and informational purposes only. All opinions and strategies shared are those of the writer/reviewer, and their risk tolerance may differ from yours. We do not accept any responsibility for any losses you may incur as a result of investments related to the information provided. Bitcoin and other cryptocurrencies are high-risk assets. Therefore, please conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.

The article JP Morgan Tokenizes Private Equity Funds on Blockchain was first published on Altcoin Buzz.

Leave a Reply

Your email address will not be published. Required fields are marked *