JPMorgan Chase Completes First Settlement of Tokenized U.S. Treasuries on a Public Blockchain

JPMorgan Chase has completed its first settlement of tokenized U.S. Treasuries on a public blockchain, in partnership with Chainlink and Ondo Finance.

JPMorgan Chase has completed its first settlement of tokenized U.S. Treasuries on a public blockchain. The transaction was executed in partnership with Chainlink and Ondo Finance.

Kinexys, JPMorgan's platform for payment settlement on a private blockchain, was used for the tokenized asset leg on a public blockchain. The transaction involved Ondo's Short-Term U.S. Government Treasuries Fund (OUSG) and was enabled by the Chainlink Runtime Environment.

The Runtime Environment facilitated a cross-chain Delivery versus Payment (DvP) transaction. DvP transactions ensure that both parties in a trade simultaneously receive their respective obligations, preventing any party from defaulting on their commitment.

In this instance, Chainlink's technology integrated Kinexys, Knexys' private network, with Ondo Chain, a public blockchain, to enable a seamless exchange of value and tokens.

"This integration marks the first time a major global bank has connected its core payment systems to a public blockchain, opening the door for institutions to seamlessly engage in DeFi protocols and vice-versa," said Colin Cunningham, Chainlink Lab's lead for the integration.

"We are excited to continue working with Chainlink to bring the benefits of Web3 to more institutions."

Kinexys, JPMorgan's platform for payment settlement on a private blockchain, processes about $2 billion daily and has managed $1.5 trillion in derivatives contracts.

The experiment also highlights the growing interest in real-world asset tokenization. According to DeFi Llama, the sector now has over $12 billion in total value locked.

"This integration is a testament to the convergence of TradFi and DeFi, merging the strengths of both to create new possibilities in the blockchain space," said Sergey Nazarov, Chainlink co-founder.

"We are grateful to JPMorgan, Ondo, and Chainlink Labs for their collaboration in making this historic moment a reality."

"This landmark transaction is a testament to the power of compliant blockchain infrastructure in managing real-world assets at scale," said Nathan Allman, CEO and founder of Ondo.

"We are proud to have played a role in this groundbreaking collaboration between JPMorgan and Chainlink."

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