JPMorgan Completes First Public Transaction With Tokenized U.S. Treasury Bonds

JPMorgan Chase, a financial institution with $4 trillion in assets, has made a significant move by completing its first public transaction involving tokenized U.S. Treasury bonds. This marks a historic leap into the world of decentralized finance (DeFi), as the bank has previously only experimented with blockchain through its private systems. The transaction, settled on May 14, 2025, was executed by JPMorgan’s blockchain division, Kinexys, using tokenized U.S. Treasuries provided by Ondo Finance. The transaction was conducted on a public blockchain using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which allowed for seamless communication between JPMorgan’s private Onyx blockchain and the public Ondo Chain testnet. This move signifies a potential convergence between traditional finance (TradFi) and DeFi, as it brings instant settlement and reduced counterparty risk to the financial markets.

The transaction used a Delivery versus Payment (DvP) model, which is a stark contrast to the traditional T+2 settlement delays in financial markets. This move is not just a proof of concept, but a clear signal that the largest players in finance are starting to see real value in DeFi infrastructure. By engaging in a public transaction, JPMorgan is testing the waters of transparent, decentralized, and efficient financial systems that until recently were dominated by crypto-native institutions. Chainlink co-founder Sergey Nazarov summed it up perfectly: “This is not just another proof of concept. This is the start of something much bigger.”

This move opens the door for wider adoption of tokenized real-world assets (RWAs) and potentially brings trillions of dollars in traditionally illiquid assets onto blockchain networks. If institutions like JPMorgan continue down this path, we could witness a future where financial markets operate 24/7 with near-instant settlements, lower costs, and reduced friction. For DeFi enthusiasts, it’s a long-awaited validation. For TradFi, it’s a cautious but undeniable step into the future. This historic transaction could reshape the future of finance, as it brings the benefits of blockchain technology to the traditional financial markets. It remains to be seen how this move will impact the financial industry, but it is clear that JPMorgan is taking a significant step towards embracing DeFi.