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- Chainlink, a leading Web3 infrastructure provider, teamed up with Ondo Finance and a major global bank to pull off a seamless DvP transaction across different blockchains.
- The transaction used Chainlink’s cross-chain technology to securely and simultaneously settle tokenized U.S. Treasuries from Ondo Finance.
Ondo Finance has announced a strategic collaboration with Chainlink and JPMorgan, marking a step forward in blockchain-based finance, enabling the first-ever cross-chain, atomic Delivery-versus-Payment (DvP) settlement of a tokenized asset. At the heart of the transaction was OUSG, a tokenized U.S. Treasury fund, which moved between Kinexys and Ondo Chain, a public Layer 1 blockchain.
Chainlink’s cross-chain orchestration technology made this possible. This technology ensures assets and payments are transferred securely, simultaneously, and with full finality, even across completely different blockchain environments. It’s a clear example of how blockchain is evolving to meet the needs of real-world finance.
“This milestone marks the first use of Ondo Chain’s infrastructure,” Ondo Finance stated in the X post, “and is a first-of-its-kind cross-chain, atomic DvP settlement of a tokenized asset (OUSG).”
The transaction also represents an expansion for Kinexys, formerly known as Onyx, a blockchain-based platform developed by JP Morgan to modernize and streamline the movement of money, assets, and financial information, which until now operated exclusively on private, permissioned networks. This development brings Kinexys into closer alignment with public blockchain environments, blending openness with institutional-grade compliance.
As Crypto News Flash reported, Ondo Chain is designed specifically to scale tokenized RWAs. By combining the transparency of public blockchains with the security and regulatory features demanded by financial institutions, it aims to serve as a backbone for institutional-grade financial markets moving on-chain. “Ondo Chain lays the foundation for compliant, scalable tokenization of global financial markets. The successful execution of this transaction represents a major milestone,” said Nathan Allman, CEO of Ondo Finance.
Massive Market Potential
The Kinexys platform has already processed over $1.5 trillion in notional value, with more than $2 billion in daily transactions. In the past year alone, payment transaction volume on the platform has grown 10x, showing clear institutional demand for blockchain-based settlement mechanisms. The success of this cross-chain atomic DvP transaction not only validates the Ondo Chain testnet but also sets the stage for more complex settlement workflows and broader use cases across capital markets.
Sergey Nazarov, co-founder of Chainlink, highlighted the broader implications of the collaboration, “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.”
This development aligns with a larger trend: institutional investors are increasingly embracing tokenization as a way to modernize capital markets, reduce settlement times, and increase efficiency.
As reviewed in our recent publication, Chainlink’s token, LINK, has been making headlines with a strong comeback that kicked off on May 6, thanks in part to a more favorable macroeconomic environment. Since hitting its lowest point earlier this year, LINK has surged nearly 70%, pushing its market cap past the $11.2 billion mark.
At the moment, LINK is trading at $16.16, down about 4% over the past 24 hours and 69% below its all-time high of $52.
