JPMorgan settles tokenized treasuries transaction using Ondo Finance and Chainlink

JPMorgan Chase has taken a step toward integrating with a public blockchain transaction using Ondo Finance and Chainlink. 

On Wednesday, the bank announced that it had settled a transaction on a public blockchain for the first time, using technology from Chainlink (LINK) and Ondo Finance (ONDO), according to Fortune reporting.

The transaction, conducted in early May, involved JPMorgan’s blockchain division, Kinexys, moving funds between accounts on its private network to settle a purchase of tokenized U.S. Treasuries on Ondo’s public platform. 

According to Ondo Finance, the transaction was the first cross-chain, atomic Delivery versus Payment settlement of a tokenized asset on the Ondo Chain testnet. The transaction connected Kinexys’ permissioned bank settlement infrastructure with the public Layer 1 Ondo Chain via Chainlink’s cross-chain technology.

The process relied on Chainlink’s interoperability protocol to trigger the payment, enabling communication between JPMorgan’s private system and the public blockchain.

While JPMorgan has previously explored blockchain applications outside its proprietary network, including a 2024 pilot with Siemens Digital, this marks the first time the bank has built an operational framework to interact directly with public blockchains, according to Fortune.

Traditional institutions are venturing into crypto

JPMorgan’s move comes amid a broader shift in the U.S. regulatory climate. Traditional financial firms are ramping up their crypto activity. Fidelity is testing a stablecoin, Morgan Stanley is exploring crypto trading through E*Trade, and BlackRock continues to grow its tokenized treasury offerings.

Discussions between Kinexys and Chainlink began more than two years ago, and the project has been part of the bank’s long-term strategy, according to Fortune.