Chainlink Connects JPMorgan Blockchain with Ondo Chain Testnet

JPMorgan’s digital payment platform Kinexys conducted settlements using the DvP scheme with a tokenized money market fund on the Ondo Chain test network. This was made possible by Chainlink’s CCIP technology.

The trial demonstrated how different blockchains can interact to handle RWA.

This marks the first such coordination experience between a Wall Street permissioned network and a public network, according to the press release.

Ondo Chain is an L1 focused on RWA. In the pilot project, participants used it to transfer OUSG—the tokenized U.S. Treasury fund.

Settlements were processed through Kinexys, which handles over $2 billion daily on average.

The pilot project highlighted JPMorgan’s interest in expanding its institutional payment platform into the growing market of real asset tokenization.

“By connecting Kinexys with external public and private blockchain infrastructures, we can offer our clients and the financial ecosystem a broader range of scalable transaction settlement tools,” explained Kinexys Head of Settlement Solutions Nelly Salzman.

TradFi systems often struggle with DvP, which requires payments to be made before or simultaneously with the delivery of securities. The reasons are disparate systems and manual processes that delay settlements.

According to the press release, payment failures have cost market participants over $900 billion in the past decade. Blockchain technology can be leveraged for simultaneous cross-chain transactions.

“Major banks are increasingly realizing that there is a large market within the public network community. They need a reliable set of technical standards and cross-chain connectivity capabilities for successful operations in this new world,” commented Chainlink co-founder Sergey Nazarov.

Pilot project participants stated that successful testing lays the groundwork for more advanced DvP transactions and other use cases.

In September 2024, JPMorgan CEO Jamie Dimon described the institution as one of the largest users of blockchain.

Previously, the top executive questioned the 21 million coin limit of Bitcoin’s issuance. In December 2023, at a meeting with U.S. lawmakers, Dimon called for stringent restrictions on cryptocurrencies, urging their “closure.”