JPMorgan, the largest bank in the USA, has climbed aboard public blockchains through its blockchain unit Kinexys Digital Payments. In practice, Kinexys successfully executed a first transaction involving the layer 1 blockchain of Ondo Chain, the tokenized fund U.S. Treasuries Fund (OUSG), and the cross-chain infrastructure of Chainlink.
JPMorgan and the successful transaction on public blockchain with Chainlink and Ondo Finance
JPMorgan, through its blockchain unit Kinexys, has just successfully completed a test transaction involving the public blockchains of Ondo Finance and Chainlink.
In its social post, Chainlink states that it is a successful cross-chain Delivery versus Payment (DvP) transaction.
In practice, this successful transaction used:
- the blockchain deposit accounts on the authorized network of Kinexys Digital Payments for payment settlement;
- the next-generation blockchain Layer 1 of Ondo Chain specifically built to scale the tokenization of real-world assets (RWA);
- the tokenized fund U.S. Treasuries Fund (OUSG), flagship of Ondo;
- the secure cross-chain orchestration infrastructure of Chainlink.
In other words, the transaction involved the exchange of OUSG as the asset leg and Kinexys Digital Payments as the payment leg. To orchestrate the movement of the assets, the Chainlink Runtime Environment (CRE) was involved.
The CRE facilitated a seamless settlement between Kinexys Digital Payments and the Ondo Chain testnet environment, while preserving institutional-level security, compliance, and scalability standards.
JPMorgan and the successful transaction with Chainlink and Ondo Finance
JPMorgan has always operated with its authorized blockchain Kinexys Digital Payments, without ever crossing that boundary under its “control,” at least until now.
Since its inception, the Kinexys platform has surpassed 1.5 trillion dollars in notional value, processing an average of over 2 billion dollars per day in transaction volume. Payment transactions have grown 10 times compared to the previous year.
In this regard, Nelli Zaltsman, Head of Platform Settlement Solutions, Kinexys Digital Payments at Kinexys by J.P. Morgan, commented as follows:
“Kinexys Digital Payments was designed to support J.P. Morgan’s institutional clients by enhancing the current payment experience while anticipating the evolving payment needs of clients engaging in transactions on emerging infrastructures, including the public blockchain. By securely and thoughtfully connecting our institutional payment solution with 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 transaction settlement. The demonstrated cross-chain solution is proof of what can be achieved through strong collaboration between different segments of the Web3 ecosystem, and we are pleased to have worked with Ondo and Chainlink to bring the first transaction on Ondo Chain testnet to life”
Even Sergey Nazarov, co-founder of Chainlink, commented as follows:
“I am very excited about our collaboration with Kinexys by J.P. Morgan and Ondo Finance, which is a clear sign of the convergence between TradFi and DeFi that has been talked about for many years. Chainlink was built to enable the secure and reliable execution of institutional-grade transactions just like this one, across multiple blockchains and with the compliance required by large institutions like J.P. Morgan. It is becoming increasingly clear to global 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 connectivity capabilities to successfully transact in this new world”
The price of LINK
While Chainlink enjoys the success of the trial transaction with JPMorgan, its native crypto LINK does not seem to achieve the same result.
In fact, in the last 24 hours, just when this news was released, LINK experienced a price dump of -5%. At the time of writing, LINK is worth $16.53.
In any case, the current price is in a pump of +15% compared to seven days ago, and +30% compared to a month ago. Obviously, we are still at a level very far from the ATH – All-Time High recorded by LINK in May 2021, when it was worth $50.
LINK is the twelfth crypto thanks to its total market cap exceeding 10 billion dollars.
Just last month, Chainlink (LINK) was added to the crypto offering of PayPal and Venmo platforms, along with Solana (SOL).
At the network level, however, in March Chainlink had conquered Abu Dhabi, signing a MoU to enter into a strategic agreement aimed at developing new tokenization models for the country.