Crypto
- JPMorgan executed its first public blockchain transaction, settling tokenised US Treasuries (OUSG) using Chainlink to bridge its private Kinexys network with Ondo Finance’s public blockchain.
- The transaction used a Delivery versus Payment (DvP) model, demonstrating atomic settlement across private and public chains, addressing inefficiencies in traditional cross-border transactions.
- The move reflects growing institutional interest in RWA tokenisation, with Chainlink’s Sergey Nazarov calling it a clear sign that major financial players are adopting public blockchain infrastructure.
Investment bank JPMorgan has completed a landmark testnet transaction that settles real-world assets (RWAs) across private and public blockchains, marking the bank’s most direct engagement yet with public infrastructure.
Using Chainlink’s cross-chain infrastructure, the banking giant executed a testnet Delivery versus Payment (DvP) transaction that bridged its private Kinexys network with Ondo Finance’s public blockchain. As per the announcement, the result was a secure, atomic settlement between tokenised US Treasuries and institutional-grade payments across two different environments.
That asset is OUSG. The payment side used blockchain deposit accounts within JPMorgan’s permissioned Kinexys Digital Payments network. Chainlink provided the cross-chain infrastructure needed to coordinate execution across both systems.
In just the past decade, it is estimated that payment and settlement failures have cost market participants at least $914 billion. DvP issues are further compounded in cross-border transactions by complex regulatory, geographical, and currency limitations.
JPMorgan
JPMorgan’s Kinexys platform has processed over US$1.5T (AU$2.33T) in transaction volume since 2019. Daily, it exceeds US$2B (AU$3.11B), with year-over-year growth increasing tenfold. Still, Kinexys accounts for only a fraction of JPMorgan’s broader payments operation, which clears roughly US$10T (AU$15.7T) daily.
RWAs See Increasing Demand in the Market
The trial comes amid rising interest in RWA tokenisation as banks and asset managers look to modernise settlement infrastructure.
Chainlink co-founder Sergey Nazarov said the move is a “clear sign” that large financial institutions are now implementing blockchain infrastructure.
It is becoming increasingly clear to the world’s institutions that they have a large addressable market in the public chain community and that they need a reliable set of technical standards and cross-chain connection capabilities to successfully transact in this new world.
