JPMorgan Completes First Blockchain Transaction With Ondo Finance, Chainlink

JPMorgan has successfully completed a pioneering pilot transaction that integrates traditional finance with blockchain technology. This achievement was made possible through a collaboration with Ondo Finance and Chainlink.

The transaction was executed by JPMorgan's blockchain unit, Kinexys, which utilized Ondo Finance’s tokenized short-term US Treasury product, OUSG. This marks the first instance where Kinexys has connected its permissioned blockchain network with a public Layer-1 chain, utilizing Chainlink’s interoperability infrastructure.

Nelli Zaltsman, the head of settlement solutions at Kinexys, highlighted that this initiative underscores JPMorgan’s commitment to supporting institutional clients as they navigate new digital infrastructures. She emphasized that by securely integrating institutional payments solutions with both public and private blockchain infrastructures, JPMorgan can offer clients a broader range of benefits and scalable solutions for settling transactions.

The test transaction took place on the testnet of Ondo Chain, a blockchain specifically designed by Ondo for real-world asset tokenization. The transaction employed a Delivery versus Payment (DvP) model, which ensures simultaneous transfers of assets and payments, thereby reducing settlement risk.

Traditional DvP transactions often encounter delays due to fragmented systems and manual processes associated with legacy systems. These inefficiencies have been estimated to cost market participants significantly over the past decade. The complexity is further exacerbated in cross-border transactions, where varying regulations, currencies, and jurisdictions introduce additional friction.

By leveraging blockchain technology, Kinexys and its partners demonstrated a real-time settlement process that minimizes manual intervention, reduces counterparty risk, and enhances liquidity. Chainlink provided the messaging framework that synchronized actions across both blockchain networks, ensuring data consistency and finality within seconds.

Chainlink co-founder Sergey Nazarov described the pilot as a significant milestone in bridging traditional and decentralized finance. He noted that global institutions are increasingly recognizing the strategic importance of secure public blockchain access and robust cross-chain tools to unlock new markets.