900 billion pain points solved: JPMorgan General Blockchain realizes real-time settlement of "delivery versus payment".

Author: Cryptoslate

Compilation: Blockchain Knight

JPMorgan has partnered with Ondo Finance and Chainlink to complete a groundbreaking pilot deal that bridges the gap between traditional finance and blockchain.

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

This is the first time that Kinexys has connected its permissioned blockchain network to a public Layer 1 chain through Chainlink's interactive infrastructure.

Nelli Zaltsman, head of settlement solutions at Kinexys, said the move reflects JPMorgan's evolving support for institutional clients as they engage with new digital infrastructure.

"By securely and thoughtfully seamlessly connecting our institutional payment solutions with external public and private blockchain infrastructure, we can provide our customers and the broader financial ecosystem with a broader range of benefits and scalable transaction settlement solutions," the executive added.

This landmark test transaction took place on the testnet of Ondo Chain, Ondo's blockchain built specifically for the tokenization of real-world assets. It employs a delivery-versus-pay-(DvP) model, which allows assets and payments to be transferred simultaneously to reduce settlement risk.

Traditional DvP transactions 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 over the past decade.

In cross-border transactions, the level of complexity increases exponentially, as different regulations, currencies, and jurisdictions create more friction.

Using blockchain technology, Kinexys and its partners demonstrated a real-time settlement process that reduces manual intervention, reduces counterparty risk, and improves liquidity. Chainlink provides a messaging framework that operates synchronously across two blockchain networks.

Kinexys relies on blockchain-based deposit accounts to complete the payment side of transactions, while Chainlink ensures data consistency between permissioned and public chains. This reduces operational friction and enables the final confirmation of the transaction in a matter of seconds.

Sergey Nazarov, co-founder of Chainlink, called this pilot a milestone in bridging traditional and decentralized finance. He noted that global financial institutions now recognize that entering new markets requires secure access to public blockchains and strong cross-chain tools.