JPMorgan Develops Blockchain-Based Framework for Tokenizing Conventional Financial Assets

JPMorgan Chase & Co. is ramping up its blockchain efforts by introducing JPM Coin Onchain, aiming to meet the rising need for rapid financial settlements. The bank’s newest project, Kinexys Fund Flow—a blockchain-powered solution for private fund transactions—successfully executed its first live transaction this month,

in JPMorgan’s overarching plan to digitize conventional financial assets. This initiative is part of a broader industry movement to use distributed ledger technology (DLT) to simplify international payments, accelerate settlements, and improve transparency. , the bank’s blockchain projects are picking up .

Created by JPMorgan’s digital asset division Kinexys, the platform allows private fund flows to settle instantly by converting investor information into tokens. The first transaction included

Asset Management, its Private , and fund administrator Citco, to reduce manual processing and speed up capital transfers. JPMorgan intends to expand Kinexys Fund Flow’s availability in early 2026, , such as the 2019 debut of JPM Coin and the 2020 establishment of its Onyx unit.

The bank’s blockchain vision is also reaching global markets. Last November, JPMorgan revealed a partnership with Singapore’s DBS Group to create a framework for interoperability within tokenized deposit networks.

to support round-the-clock international payments and immediate tokenized deposit transfers between clients of both banks, helping to resolve fragmentation in the tokenized finance industry. This alliance comes after by Swiss institutions like UBS and PostFinance, which recently completed the first legally binding interbank payment using blockchain.

The bank’s asset tokenization approach is not limited to institutional partners. JPMorgan is teaming up with Alibaba’s global e-commerce division to investigate

via its JPMD token, which is tailored for business-to-business transactions. At the same time, JPM Coin continues to play a vital role in the bank’s internal treasury operations, between corporate clients.

Regulatory changes are further fueling the momentum behind asset tokenization.

, capital rules for major banks like JPMorgan are being relaxed, which could free up more resources for innovation in DLT and tokenized assets. Meanwhile, initiatives such as the Regulated Liability Network—a coalition of banks developing a shared ledger for tokenized deposits— toward blockchain-based infrastructure.

Analysts in the field observe that JPMorgan’s advancements are part of a larger shift as financial firms adopt blockchain to address changing market needs. "

has shifted from being a futuristic idea to a crucial competitive edge," stated Rachel Chew, DBS’s digital currency lead. With JPMorgan leading the charge, the transformation of global finance through blockchain is entering a pivotal stage.