• 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.

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 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.

Source: Chainlink