JPMorgan's Kinexys Integrates Public Blockchain on Ondo Chain Testnet
This development marks JPMorgan's first engagement with a public blockchain through its Kinexys platform.
Key Insights:
- JPMorgan’s Kinexys Digital Payments completed a tokenized Treasury transaction on Ondo Chain’s testnet.
- This initiative signals Kinexys’ first foray into a public blockchain network.
- Chainlink’s technology facilitated this cross-chain settlement.
JPMorgan has embarked on its initial venture into a public blockchain network via its Kinexys Digital Payments platform, successfully completing a tokenized U.S. Treasury transaction on the Ondo Chain testnet. This pilot, as announced in a press release from CoinDesk, marks the introduction of a Delivery versus Payment (DvP) transaction on the testnet, innovatively designed to facilitate institutional-grade real-world assets.
Kinexys, which reportedly manages more than $2 billion in transactions daily, oversaw the payment portion while Ondo Finance’s tokenized short-term Treasury fund (OUSG) constituted the asset side. The Chainlink Runtime Environment efficiently managed the settlement between the two platforms.
This transaction on a public blockchain is a first for Kinexys, indicating JPMorgan’s exploration of expanding its fine payments infrastructure into the burgeoning market focused on tokenizing real-world assets.
“By securely and effectively linking our institutional payments system with both external public and private blockchain infrastructures, we can deliver more comprehensive benefits and scalable solutions for transaction settlements,” stated Nelli Zaltsman, head of settlement solutions at Kinexys.
Traditional finance faces challenges with DvP transactions due to cumbersome systems and manual processes that can delay settlements. Reports suggest that such payment and settlement failures have cost over $900 billion to market players over the last decade. Blockchain technology offers a valuable solution by enabling simultaneous cross-chain transactions.
JPMorgan has been progressively expanding its blockchain-based payment network, recently integrating support for accounts denominated in the British pound.
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