tl;dr
JPMorgan Chase completed its first transaction on a public blockchain by settling a tokenized U.S. Treasuries transaction on Ondo Finance, using Chainlink to connect private and public networks. This is part of JPMorgan's decentralized finance project, Kinexys, which bridges traditional finance and ...
JPMorgan Chase has successfully completed its first public blockchain transaction by settling tokenized U.S. Treasuries on Ondo Finance, utilizing Chainlink to link private and public networks. This milestone showcases JPMorgan’s deepening engagement with Web3 through its decentralized finance platform, Kinexys, which bridges traditional finance and DeFi.
Real-world asset (RWA) tokenization is rapidly gaining momentum among institutional investors, with more than $12 billion locked across over 80 DeFi platforms. Major players like BlackRock have significantly invested in this space, managing nearly $3 billion in their Institutional Digital Liquidity Fund, highlighting the growing appetite for tokenized treasuries.
JPMorgan’s involvement with distributed ledger technology dates back to 2019 when it introduced JPM Coin, now rebranded as Kinexys. This platform handles approximately $2 billion in daily transactions and underpins about $1.5 trillion in derivative contracts. Kinexys aims to facilitate efficient, near real-time, 24/7 cross-border trades while significantly reducing transaction costs for market participants.
The bank’s move aligns with a broader trend among financial giants embracing Web3 innovations; for instance, Citi recently partnered with SDX to tokenize private company shares for high-net-worth investors. Together, these developments signal a major shift in how institutions are integrating blockchain technology to transform asset liquidity and accessibility in the financial sector.