Chainlink, JPMorgan's blockchain unit Kinexys, and Ondo Finance have completed the first cross-chain Delivery versus Payment (DvP) transaction

The transaction, according to the release sent to Bitcoin.com News, settled Ondo Finance's tokenized U.S. Treasuries Fund (OUSG) using JPMorgan's permissioned Kinexys Digital Payments network

As part of its broader efforts to integrate traditional bank payment rails with tokenized asset markets, Chainlink, JPMorgan’s blockchain unit Kinexys, and Ondo Finance have completed the first cross-chain Delivery versus Payment (DvP) transaction on Ondo Chain’s testnet.

The transaction, details of which were shared in a statement sent to Bitcoin.com News on Monday, saw Ondo Finance’s tokenized U.S. Treasuries Fund (OUSG) being settled using JPMorgan’s permissioned Kinexys Digital Payments network, while Chainlink’s Runtime Environment orchestrated atomic cross-chain transfers.

This use case marks the debut of Ondo Chain, a new layer one (L1) blockchain designed to scale institutional-grade real-world asset tokenization by merging the inherent accessibility of a public blockchain with the permissioned-network security that institutions require.

DvP settlements, in which the exchange of assets and payments occurs simultaneously, are typically encumbered by delays and risks due to fragmented systems in traditional finance. However, blockchain-based solutions facilitate efficient automation of these critical workflows, mitigate counterparty risk, and enhance transparency throughout the process.

The partners estimate that payment and settlement failures have resulted in an estimated loss of over $914 billion for markets over the past decade alone, highlighting the urgent need for rapidly deployable solutions that can be seamlessly integrated with existing financial institutions.

“We are excited to be working with Kinexys to connect institutional payments with public blockchain technology,” said Kinexys’ Head of Platform Settlement Solutions, Nelli Zaltsman.

“This integration marks a significant step forward in enabling institutions to fully participate in the future of finance.”

Chainlink co-founder Sergey Nazarov added that the transaction serves as a key milestone in merging traditional and decentralized finance.

“Institutions can now easily deploy Chainlink’s cross-chain, decentralized infrastructure to rapidly deploy advanced use cases that would otherwise be impossible to build,” said Nazarov.

Ondo CEO Nathan Allman concluded that the successful testnet launch is a "statement about the future of finance."

Institutions are increasingly adopting blockchain infrastructure to modernize asset settlements, combining compliance, scalability, and interoperability across public and private networks. This collaboration signals a key development in streamlining asset transfer and payment cycles within the global financial ecosystem.