JPMorgan has completed a groundbreaking pilot transaction that bridges traditional finance and blockchain in collaboration with Ondo Finance and Chainlink.
According to a May 14 statement, the banking giantās blockchain unit, Kinexys, successfully executed a cross-chain atomic settlement using OndoĀ FinanceāsĀ tokenized short-term US Treasury product, OUSG.
This marks the first time Kinexys has connected its permissioned blockchain network with a public Layer-1 chain, leveraging Chainlinkās interoperability infrastructure.
Nelli Zaltsman, head of settlement solutions at Kinexys, said the initiative reflects JPMorganās evolving support for institutional clients as they engage with new digital infrastructures.
The executive added:
āBy securely and thoughtfully connecting our institutional payments solution with both external public and private blockchain infrastructures seamlessly, we can offer our clients and the broader financial ecosystem a wider range of benefits and scalable solutions for settling transactions.ā
JPMorganās test transaction
The landmark test transaction occurred on the testnet of Ondo Chain, a blockchain purpose-built by Ondo for real-world asset tokenization. It used a Delivery versus Payment (DvP) model, which allows simultaneous transfers of assets and payments to reduce settlement risk.
Traditional DvP transactions can often face delays due to fragmented systems and manual processes associated with legacy systems. Industry estimates show that these inefficiencies have cost market participants over $900 billion in the past decade.
The complexity multiplies in cross-border transactions, where varying regulations, currencies, and jurisdictions introduce further friction.
Using blockchain rails, Kinexys and its partners demonstrated a real-time settlement process that reduces manual intervention, reduces counterparty risk, and improves liquidity. Chainlink provided the messaging framework that synchronized actions across both blockchain networks.
Kinexys relied on blockchain-based deposit accounts to complete the payment side of the trade, while Chainlink ensured data consistency across the permissioned and public chains. This reduced operational friction and delivered finality within seconds.
Chainlink co-founder Sergey Nazarov called the pilot a milestone in bridging traditional and decentralized finance. He noted that global institutions now recognize the strategic need for secure public blockchain access and robust cross-chain tools to unlock new markets.
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