JPMorgan, in collaboration with Ondo Finance and Chainlink, completed a pilot transaction bridging traditional finance and blockchain. According to a May 14 statement, JPMorgan's blockchain unit, Kinexys, executed a cross-chain atomic settlement using Ondo Finance's tokenized short-term US Treasury product, OUSG. This marks Kinexys's first connection between its permissioned blockchain and a public Layer-1 chain, utilizing Chainlink's interoperability infrastructure.
The test transaction occurred on Ondo Chain's testnet, using a Delivery versus Payment (DvP) model to reduce settlement risk. Traditional DvP transactions often face delays costing market participants over $900 billion in the past decade. Kinexys and its partners demonstrated a real-time settlement process using blockchain, reducing manual intervention and improving liquidity.
Kinexys used blockchain-based deposit accounts for payments, while Chainlink ensured data consistency across chains, delivering finality within seconds. Chainlink co-founder Sergey Nazarov highlighted the pilot as a milestone, noting the strategic need for secure public blockchain access.
This article is based on our author's analysis of materials taken from CryptoSlate.