JPMorgan’s Kinexys Integrates with Public Blockchain for Ondo Chain Testnet Launch

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<img src="https://cdn.sanity.io/images/s3y3vcno/production/fa3237380179c4cd2183c1642c2a7865749d1e29-1920x1552.jpg?auto=format&amp;w=1920&amp;h=1080&amp;crop=focalpoint&amp;fit=clip" /><br>JPMorgan (JPM) has made its first move into a public blockchain network through its Kinexys Digital Payments platform, successfully completing a tokenized U.S. Treasury transaction on Ondo Chain’s testnet. This pilot, detailed in a press release shared with CoinDesk, represents the debut of a Delivery versus Payment (DvP) transaction on the testnet, which is a new layer-1 blockchain designed for institutional-grade real-world assets. Kinexys, which processes an average of over $2 billion in daily transaction volume, managed the payment part, while Ondo Finance’s tokenized short-term Treasury fund (OUSG) served as the asset leg. The Chainlink Runtime Environment—an infrastructure for managing cross-chain workflows—secured the settlement across both networks.

This marks the first occasion that Kinexys, the Wall Street bank's permissioned network, has conducted a transaction on a public blockchain. This initiative reflects the bank's exploration of ways to enhance its institutional payments infrastructure in the expanding market for real-world asset tokenization. “By securely and thoughtfully connecting our institutional payments solution with both public and private blockchain infrastructures, we can offer our clients and the broader financial ecosystem a wider range of benefits and scalable solutions for settling transactions,” said Nelli Zaltsman, head of settlement solutions at Kinexys.

Traditional finance often faces challenges with DvP transactions, which require payments to be made concurrently with the delivery of securities. Fragmented systems and manual processes often lead to delays in settlement. According to the release, payment and settlement failures have resulted in costs exceeding $900 billion for market participants over the past decade. The release emphasizes that blockchain technology can facilitate simultaneous cross-chain transactions. JPMorgan has been expanding its blockchain-based payments network, recently adding support for British-pound-denominated accounts.