JPMorgan Completes Groundbreaking Pilot Transaction Bridging Traditional Finance and Blockchain

According to a May 14 statement, the banking giant's blockchain unit, Kinexys, successfully executed a cross-chain atomic settlement using Ondo Finance's tokenized short-term US Treasury product, OUSG.

JPMorgan has completed a pilot transaction that showcases the potential of blockchain technology to bridge traditional finance and Web3.

As announced on May 14, Kinexys, the banking giant’s blockchain unit, has successfully executed a cross-chain atomic settlement using Ondo Finance’s tokenized short-term US Treasury product, OUSG.

This marks the first time Kinexys has connected its permissioned blockchain network with a public Layer-1 chain, and it was made possible by Chainlink’s interoperability infrastructure.

The initiative highlights JPMorgan’s evolving support for institutional clients as they engage with new digital infrastructures, said Nelli Zaltsman, head of settlement solutions at Kinexys.

“By securely and thoughtfully connecting our institutional payments solution with both external public and private blockchain infrastructures seamlessly, we can offer our clients and the broader financial ecosystem a wider range of benefits and scalable solutions for settling transactions,” she added.

JPMorgan’s test transaction

The test transaction took place on the testnet of Ondo Chain, which is a blockchain that Ondo built for real-world asset tokenization. It used a Delivery versus Payment (DvP) model, which allows simultaneous transfers of assets and payments to reduce settlement risk.

Traditional DvP transactions can often face delays due to fragmented systems and manual processes associated with legacy systems. Industry estimates show that these inefficiencies have cost market participants more than $900 billion in the past decade.

The complexity multiplies in cross-border transactions, where varying regulations, currencies, and jurisdictions introduce further friction.

Using blockchain rails, Kinexys and its partners demonstrated a real-time settlement process that reduces manual intervention, minimizes counterparty risk, and improves liquidity. Chainlink provided the messaging framework that synchronized actions across both blockchain networks.

Kinexys leveraged blockchain-based deposit accounts to complete the payment side of the trade, while Chainlink ensured data consistency across the permissioned and public chains. This reduced operational friction and delivered finality within seconds.

“This pilot is a milestone in bridging traditional and decentralized finance, as global institutions are now recognizing the critical need for secure public blockchain access and robust cross-chain tools to unlock new markets, foster innovation, and drive broader adoption of blockchain technology,” said Sergey Nazarov, co-founder of Chainlink.

The integration of Chainlink’s interoperability technology was crucial for connecting Kinexys’s private instance of the Boston Consulting Group’s blockchain with Ondo Chain, thereby enabling cross-chain atomic settlement.

Chainlink’s off-chain messaging framework synchronized the actions required for the DvP transaction. This included crediting the Kinexys account on Kinexys’s blockchain and debiting the Ondo Chain account on Ondo Chain.

Chainlink’s cross-chain technology also enabled the generation of an immutable record of the transaction on both blockchains.

“We are excited to continue working with Kinexys and other leading institutions to realize the full potential of blockchain technology for the global financial system,” added Nazarov.