Chainlink connected the JPMorgan blockchain and the Ondo Chain testnet

The Kinexys digital payment platform from JPMorgan bank conducted calculations using the DvP scheme with a tokenized money fund in the Ondo Chain test network. This was made possible by Chainlink’s CCIP technology.

The test showed how various blockchains can interact to work with RWA.

This is the first such experience of coordination related to Wall Street in a permissioned and public network, according to the press release.

Ondo Chain is an L1 focused on RWA. As part of the pilot project, participants utilized it for the transfer of OUSG — a tokenized fund of U.S. Treasury obligations.

Settlements were carried out through Kinexys, which processes an average of over $2 billion a day.

The pilot project demonstrated JPMorgan’s interest in expanding its institutional payment platform to the growing market of tokenization of real assets.

“By connecting Kinexys with external public and private blockchain infrastructures, we will be able to offer our clients and the financial ecosystem a wider range of scalable tools for transaction settlements,” explained Nelly Zaltsman, head of Kinexys’ settlement solutions department.

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

According to the press release, payment disruptions have cost market participants over $900 billion in the last 10 years. Blockchain technology can be utilized to conduct simultaneous cross-chain transactions.

“Large banks are increasingly realizing that they have a significant market in the community of public networks. 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.

Participants in the pilot project stated that successful testing lays the foundation for more advanced DvP transactions and other application scenarios.

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

Earlier, the top manager questioned the Bitcoin emission limit of 21 million coins. In December 2023, during a meeting with U.S. lawmakers, Dimon stated the need for serious restrictions on cryptocurrencies, calling for their “closure.”