JPMorgan Settles First Tokenized Treasury Trade Using Public Blockchain
In a landmark move for traditional finance, JPMorgan Chase has taken its first concrete step into the public blockchain arena, settling a real-world transaction using public ledger infrastructure in collaboration with Chainlink and Ondo Finance.
For years, JPMorgan has developed its own private blockchain infrastructure—a “walled garden” approach where only its clients can access blockchain-based services. But this week marks a notable departure. In early May, JPMorgan’s blockchain unit Kinexys facilitated a settlement involving tokenized U.S. Treasuries on Ondo Finance’s public blockchain, triggering the payment using Chainlink’s oracle network.
This wasn’t just a test. JPMorgan actually moved real money between accounts on its internal blockchain to complete the transaction on Ondo’s decentralized infrastructure, making it the bank’s first-ever settlement involving a public blockchain structure.
Chainlink Plays Key Role
To execute the transaction, JPMorgan relied on Chainlink’s interoperability protocol, which allows private and public blockchains to securely communicate. This type of integration could lay the groundwork for a hybrid financial system, blending institutional-grade infrastructure with decentralized finance (DeFi) innovations.
“This is not just another POC [proof of concept],” said Chainlink co-founder Sergey Nazarov, emphasizing the significance of the development. “This is the beginning of something big.”
Beyond Proof of Concept
JPMorgan has previously dabbled in public blockchain tests, including a 2024 trial with Siemens Digital, but this latest transaction marks the first time the bank has deployed infrastructure ready for production use, according to Nelli Zaltsman, Head of Platform Settlement Solutions at Kinexys.
With tokenized assets and cross-chain settlements becoming a key theme in the evolution of finance, JPMorgan’s shift signals growing institutional confidence in public blockchain tech—a milestone that could accelerate mainstream adoption of DeFi tools by Wall Street.
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
