The collaboration connected tokenized U.S. Treasuries with blockchain-based payments. It offers a glimpse into the future of institutional-grade settlement.
At the center of the test was Ondo’s tokenized U.S. Treasuries Fund (OUSG) and J.P. Morgan’s permissioned Kinexys Digital Payments network. It also marked the debut of the Ondo Chain testnet. It is a Layer 1 blockchain purpose-built to scale real-world asset tokenization. Chainlink enabled the cross-chain exchange of assets and payments with its secure infrastructure.
A Unified Vision: Onchain Assets Meet Institutional Payments
DvP is a financial mechanism that ensures securities are delivered only if payment is made. It has long been hampered by slow, fragmented systems. According to a BIS estimate, failed settlements have cost market participants over $900 billion in the past decade. This test, however, changed that narrative.
The payment leg occurred on Kinexys’ permissioned blockchain, while the asset leg used Ondo Chain’s testnet and its tokenized short-term Treasury fund. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Runtime Environment (CRE) securely coordinated the transaction, automating all steps of the process and minimizing counterparty risk”.
We’re excited to announce the successful completion of a cross-chain Delivery versus Payment (DvP) transaction in collaboration with Kinexys by J.P. Morgan (@jpmorgan) and @OndoFinance.https://t.co/W2IC8NeO18
This milestone marks the first-of-its-kind cross-chain, atomic… pic.twitter.com/0J1tA3AYWk
— Chainlink (@chainlink) May 14, 2025
By securely connecting our payments platform with public and private blockchains, we offer scalable, compliant tools for institutions,” said Nelli Zaltsman, Head of Platform Settlement Solutions at Kinexys Digital Payments.
Institutional DeFi in Action
This milestone showcases a trend that’s gaining traction fast: the merging of traditional finance (TradFi) with decentralized finance (DeFi). Institutions like BlackRock and Franklin Templeton are already exploring tokenized assets. Ondo’s testnet launch and this successful cross-chain settlement reinforce that shift.
“This collaboration is proof that the future of finance lies in connecting real-world value with blockchain infrastructure,” said Nathan Allman, CEO of Ondo Finance. Chainlink’s Sergey Nazarov added, “It’s a clear signal of the TradFi–DeFi convergence we’ve long envisioned.”
1/ Kinexys by J.P. Morgan (@jpmorgan), Ondo Finance, and @chainlink are teaming up to connect bank settlement infrastructure to Ondo Chain.
Today, we are excited to announce the debut transaction on Ondo Chain testnet — a cross-chain, atomic DvP settlement of OUSG. pic.twitter.com/AIiOntgUMz
— Ondo Finance (@OndoFinance) May 14, 2025
Kinexys’ platform, which processes over $2 billion daily and has surpassed $1.5 trillion in notional value since launch, now expands beyond private systems into public, interoperable blockchain finance. This test transaction isn’t just a technical win—it’s a signal. As more institutions embrace onchain assets, infrastructure that bridges private and public chains will be key.
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