The transaction represents the debut of a Delivery versus Payment (DvP) settlement on Ondo Chain’s testnet. JPMorgan’s Kinexys platform handled the payment leg, while the asset side was fulfilled through Ondo Finance’s tokenized short-term U.S. Treasury fund (OUSG). Coordination across the networks was secured by Chainlink’s Cross-Chain Interoperability Protocol (CCIP), highlighting the growing role of middleware in enabling real-time, cross-chain transactions.
Notably, this marks the first time Kinexys—JPMorgan’s traditionally permissioned payment network—has interacted with a public blockchain, signaling a pivotal shift in how legacy financial institutions may approach blockchain integration in the future.
“By 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,” said Nelli Zaltsman, Head of Settlement Solutions at Kinexys.
The use of blockchain for DvP transactions is seen as a major improvement over traditional systems, which are often burdened with fragmentation, manual processes, and settlement delays. According to the release, failed or delayed payments have cost market participants over $900 billion globally over the past decade.
By leveraging blockchain infrastructure, JPMorgan aims to overcome these legacy inefficiencies, allowing for secure, instantaneous cross-chain settlement of real-world assets. The move also aligns with the bank’s broader strategy to expand its blockchain footprint—recently extending Kinexys’ capabilities to support British-pound denominated accounts.
This pilot transaction serves as a key proof-of-concept that could pave the way for broader adoption of tokenized assets and public blockchain settlement in traditional finance.
Disclaimer: This blog is for informational purposes only and should not be construed as financial advice.
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