Chainlink, Kinexys by J.P. Morgan, and Ondo Finance Team Up to Bring Bank Payment Rails to Tokenized Asset Markets
- The first-of-its-kind Delivery versus Payment solution is the debut transaction on Ondo Chain's testnet.
- The successful settlement of Ondo Finance's Tokenized Fund (OUSG) with J.P. Morgan's permissioned Kinexys Digital Payments network on the Ondo Chain network was facilitated using Chainlink as the secure cross-chain orchestration layer.
- The transaction highlights a scalable solution for Kinexys Digital Payments settlement rails to support the growing Real-World Asset market across public blockchains.
NEW YORK, May 14, 2025 /PRNewswire/ -- Chainlink, the standard for onchain finance, Kinexys by J.P. Morgan, the financial services firm's blockchain business unit, and Ondo Finance, the leading name in real-world asset tokenization, announced today the successful completion of a cross-chain Delivery versus Payment (DvP) test transaction. The successful transaction utilized blockchain deposit accounts on Kinexys Digital Payments' permissioned network for payment settlement, Ondo Chain's next-generation Layer 1 blockchain purpose-built to scale the tokenization of real-world assets, Ondo's flagship tokenized U.S. Treasuries Fund (OUSG), and Chainlink's secure cross-chain orchestration infrastructure.
This milestone powered by Chainlink demonstrates a scalable approach to cross-chain, atomic settlement of a tokenized asset between Kinexys Digital Payments' permissioned blockchain network and the Ondo Chain. This is the debut transaction on the Ondo Chain testnet, a new Layer 1 purpose-built for institutional-grade real-world assets, combining the openness of public blockchains with the security features of permissioned chains. This also marks an expansion of the Kinexys platform's settlement integrations to date beyond fully private chains.
The transaction involved the exchange of Ondo Chain's Short-Term U.S. Government Treasuries Fund (OUSG) as the asset leg with Kinexys Digital Payments serving as the payment leg. The DvP solution that orchestrated the movement of asset and payment was powered end-to-end by the Chainlink Runtime Environment (CRE)—a secure offchain computing environment for coordinating activity across blockchains and existing systems, which leveraged an integration with Kinexys Digital Payments' synchronized settlement workflow. CRE facilitated a seamless settlement between Kinexys Digital Payments and Ondo Chain's testnet environment, while preserving institutional-grade security, compliance, and scalability standards.
"Kinexys Digital Payments is designed to support J.P. Morgan's institutional clients by enhancing the current payment experience, while also anticipating clients' evolving payments needs as they engage in transactions on emerging infrastructures, including public blockchain. 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. The demonstrated cross-chain solution is a testament to what can be achieved through strong collaboration across diverse segments of the Web3 ecosystem, and we are pleased to have worked with Ondo and Chainlink to bring this to life as the first transaction on Ondo Chain testnet," — Nelli Zaltsman, Head of Platform Settlement Solutions, Kinexys Digital Payments at Kinexys by J.P. Morgan.
DvP transactions are difficult to execute in traditional finance due to fragmented systems and manual workflows, leading to costly settlement delays and increased counterparty risk. In just the past decade, it is estimated that payment and settlement failures have cost market participants at least $914B+1. DvP issues are further compounded in cross-border transactions by complex regulatory, geographical, and currency limitations.
By leveraging blockchain on both the asset and payment legs of the transaction and Chainlink's oracle infrastructure for orchestration of atomic DvP settlement, assets and payments can be exchanged simultaneously cross-chain, reducing counterparty and settlement risk. Automated workflows at all points of the transaction enhance operational efficiency, while near real-time finality supported by the asset and payment infrastructures improves liquidity management. Additionally, blockchain-based settlement reduces intermediary costs and increases transparency through immutable, verifiable transaction records that offer real-time visibility into asset movements.
"I am very excited about our collaboration with Kinexys by J.P. Morgan and Ondo Finance, which is a clear sign of the TradFi and DeFi convergence that we have been talking about for many years now. Chainlink has been built to enable the secure and reliable execution of institutional-grade transactions just like this, across multiple blockchains and with the compliance required by large institutions like J.P. Morgan. It is becoming increasingly clear to the world's institutions that they have a large addressable market in the public chain community and that they need a reliable set of technical standards and cross-chain connection capabilities to successfully transact in this new world." — Sergey Nazarov, Co-Founder of Chainlink.
"The debut transaction on Ondo Chain's testnet with both Kinexys by J.P. Morgan and Chainlink isn't just a major milestone, it's a statement about the future of finance. We're thrilled to collaborate with two of the most influential players in crypto and traditional finance to demonstrate the power of compliant, scalable blockchain infrastructure for real-world assets." — Nathan Allman, CEO of Ondo Finance.
Since inception, the Kinexys platform has exceeded $1.5 trillion in notional value, processing2 an average of more than $2 billion3 daily in transaction volume. Payments transactions have grown by 10x year-over-year4.
The successful completion of cross-chain, atomic settlement of a tokenized treasury fund within a testnet environment establishes the foundation for future work on more advanced DvP transactions and use cases.
About Chainlink
Chainlink is the standard for onchain finance, verifiable data, and cross-chain interoperability. Chainlink is unifying liquidity across global markets and has enabled over $20 trillion in transaction value across the blockchain economy. Major financial market infrastructures and institutions, such as Swift, Fidelity International, and ANZ Bank, as well as top DeFi protocols including Aave, GMX, and Lido, use Chainlink to power next-generation applications for banking, asset management, and other major sectors. Learn more by visiting chain.link.
About Ondo Finance
Ondo is a blockchain technology company. Its mission is to accelerate the transition to an open economy by building the platforms, assets, and infrastructure that bring financial markets onchain. Ondo Chain, its newly launched blockchain, is purpose-built to support institutional-grade onchain financial markets. For more information, visit https://ondo.finance.
NOTE: OUSG has not been registered under the US Securities Act of 1933, as amended ("Act") or pursuant to securities laws of any other jurisdiction, and may not be offered, sold or otherwise transferred in the US or to US persons unless registered under the Act or an exemption or exclusion from the registration requirements thereof is available. Ondo I LP, the issuer of OUSG, is not registered as an investment company under the US Investment Company Act of 1940, as amended. Nothing herein constitutes any offer to sell, or any solicitation of an offer to buy, OUSG. Acquiring OUSG involves risks. An OUSG holder may incur losses, including total loss of their investment. Past performance is not an indication of future results.
Ondo does not endorse, Ondo does not make any representation or warranty whatsoever (express or implied, including but not limited to any warranty of merchantability, fitness for a particular purpose or non-infringement) regarding, and ONDO SHALL NOT HAVE ANY LIABILITY WHATSOEVER WITH RESPECT TO ANYONE'S USE OF, any third-party products, services or technologies referenced herein. Additional terms apply. Visit https://ondo.finance/ousg for details.
1 Firebrand Research, January 2024: https://www.marketsmedia.com/penalties-settlement-failure-resolutions-cost-915bn/
2 Cumulative transactions (USD) across Kinexys products since inception
3 JPMC proprietary data, 2024 (https://www.jpmorgan.com/kinexys/index)
4 Based on Jan-Aug 2023 vs 2024 YoY transactions volume attributed to growth driven by Kinexys Digital Payments
SOURCE Chainlink; Ondo Finance
Share this article