Ondo Chain Completes First Cross-Chain DvP Test Transaction with Kinexys and Chainlink

The transaction involved the settlement of Ondo’s tokenized Short-Term U.S. Treasuries Fund (OUSG) on Ondo Chain

Ondo Finance has achieved a major milestone by completing the first cross-chain Delivery versus Payment (DvP) test transaction on the testnet of its Ondo Chain.

This initiative, carried out in collaboration with JPMorgan's Kinexys and Chainlink, highlights the potential of blockchain to streamline the settlement of tokenized real-world assets (RWAs).

The transaction involved the settlement of Ondo's tokenized Short-Term U.S. Treasuries Fund (OUSG) on Ondo Chain, paired with blockchain-based deposit accounts on Kinexys Digital Payments for the payment leg. Chainlink's secure cross-chain orchestration infrastructure, the Chainlink Runtime Environment (CRE), enabled atomic settlement across both public and permissioned blockchain networks.

“This is the first time ever that you can go 24/7, 365 from a tokenized bank deposit to a tokenized treasury.”

Announcing the debut transaction on Ondo Chain testnet in collaboration with @chainlink and Kinexys by @jpmorgan.

This test transaction on the Ondo Chain testnet marks a major milestone in the development of cross-chain DvP for tokenized treasury and bank deposits.

DvP transactions in traditional finance are often encumbered by fragmented systems and manual workflows, leading to delays and counterparty risk. Blockchain-based DvP mechanisms, on the other hand, work by synchronizing asset and payment transfers.

The Ondo-Kinexys-Chainlink collaboration demonstrates how such cross-chain setups can offer seamless and efficient DvP, mitigating time-of-value and counterparty risk.

Technology and institutional integration

Ondo Chain is designed as a Layer 1 blockchain optimized for RWA tokenization, aiming to bridge public blockchain transparency with the security of permissioned systems. The integration with Kinexys marks a significant step as the platform expands beyond private chains.

Chainlink's CRE played a central role in coordinating the test, ensuring institutional-grade security and compliance. This integration is crucial for enabling large financial institutions to participate in DeFi protocols and services with the same level of trust and security they have in traditional financial systems.

This test transaction lays the groundwork for more sophisticated DvP implementations and showcases the growing interoperability between traditional financial institutions and decentralized technologies. By successfully settling a tokenized treasury fund across networks, Ondo Finance positions itself as a key player in advancing the convergence of TradFi and DeFi.

ONDO price outlook: Technicals hint at bullish reversal

While the ONDO token has declined 32% year-to-date, technical indicators suggest a potential turnaround. Popular chart analyst "Merlijn the Trader" recently posted a bullish outlook, noting the token's support structure has held firm and comparing the current setup to a previous breakout pattern that led to significant gains. According to the analyst, this could lead to 3x gains for the token.

CoinCodex's ONDO price prediction aligns with this sentiment, projecting a strong rally with a potential peak at $4.65 in 2025. If realized, this would mark a new all-time high for ONDO and reinforce its relevance in the evolving RWA and DeFi sectors.