JPMorgan tests public blockchain for tokenized US state bonds
JPmorgan has carried out a historical pilot transaction through his new settlement unit Kinexys Digital Payments. For the first time, the US banking giant used a public blockchain for trading tokenized assets.
A tokenized US state bond fund (OUSG) was traded by Ondo Finance on the public ondo chain, while payment processing was carried out via Kinexys. Both systems were connected via Chainlinks CCIP (Cross-Chain Interoperability Protocol). The result: a fully automated Delivery VS Payment (DVP) transaction between a private and a public blockchain-an important step for institutional tokenization.
From banks to blockchains: The first bridge blow
The specialty of this transaction lies in its cross-chain structure. Payment took place on JPMorgan's private Kinexys-Blockchain, while the asset exchange took place via the publicly accessible Ondo Chain. Chainlink acted as a bridge between the two systems. Thanks to CCIP, the transaction was handled atomarian, i.e. either complete or not at all-enormous progress in relation to security, transparency and efficiency compared to today's intermediate-controlled DVP processes.
Nathan Allman, CEO of Ondo Finance, explained that this architecture set new standards for institutional degrees. The integration of traditional assets on public blockchains-in this case tokenate US state bonds-creates a completely interoperable, transparent financial model for the first time.
What that means for the future
This test transaction underlines the growing role of public blockchains in the institutional financial sector. So far, banks such as JPmorgan have used almost exclusively closed systems for blockchain solutions (e.g. OnyX). The opening towards public chains shows that transparency, liquidity and global accessibility gain in importance. Chainlink's CCIP thus becomes a critical infrastructure for an “Internet of Finance” that intelligently connects private and public systems.
JPMorgan has been continuously developing its own blockchain technology for years. However, instead of integrating them into public blockchains, the largest bank in the USA has chosen the approach known by many in the cryptowelt as “Walled Garden” and built up a private network that can only use its customers. Finally, JPmorgan ventures the step beyond this garden. The symbolic power of the test is high: it shows that Wall Street makes seriously with the integration of defi elements into the real financial world-a milestone for the tokenization of traditional assets.
