JP Morgan Joins Forces With Chainlink and Ondo for Cross-Chain Crypto Settlement Test

Key takeaways

• JP Morgan Chase settles its first transaction using Ondo Finance and Chainlink to process information outside the blockchain.
• With this, the prices of LINK and ONDO attracted marginal gains in the times when crypto markets are facing some bearish pressures.
• The transaction used JPMorgan’s Kinexys network, Ondo’s tokenized U.S. Treasuries (OUSG), and Chainlink’s CCIP for secure blockchain interoperability and multi-chain payment settlement.
• JP Morgan doesn’t hold Bitcoin or Ethereum but uses JPM Coin—its private stablecoin—for institutional wholesale payments on the permissioned Onyx blockchain.

Global banking powerhouse, JP Morgan, crypto oracle Chainlink, and a popular RWA (real-world asset) platform, Ondo Finance, announced the successful completion of a cross-chain Delivery versus Payment (DvP) test transaction. The transaction is believed to be a signal of the financial integration with the Web3 space, which could offer a strong boost to the crypto space. 

The financial giant has been developing its blockchain for over 6 years since it debuted its decentralized platform with JPM Coin. As per the press release, the transaction utilized blockchain-based deposit accounts on Kinexys Digital Payments network for payment settlement, the layer-1 Ondo chain to scale the tokenization of real assets, Ondo’s flagship tokenized U.S. Treasuries Fund (OUSG), and Chainlink’s secure cross-chain infrastructure. 

According to Sergey Nazarov, co-founder of Chainlink, the platform has been built to enable the secure and reliable execution of institutional-grade transactions across multiple blockchains.  The collaboration, per him, is ‘a classic example of the TradFi and DeFi convergence’ of recent times.

Does JP Morgan Own Crypto?

JP Morgan does not hold public cryptocurrencies like Bitcoin or Ethereum on its balance sheet. Instead, the bank’s main digital asset is JPM Coin, a proprietary stablecoin pegged 1:1 to the U.S. dollar. JPM Coin is not a publicly traded crypto and operates exclusively on Onyx, JP Morgan’s private, permissioned blockchain network.

The bank uses JPM Coin primarily for wholesale payments and settlement between institutional clients. As of 2024, JPM Coin reportedly handles over $1 billion in daily transactions.

Also read: How JP Morgan transforming Blockchain Banking & JPM Coin

Which Blockchain Does JP Morgan Use?

JP Morgan’s primary blockchain platform is Onyx, a custom-built, enterprise-grade ledger used for:

* Interbank payments
* Intraday repo transactions
* Derivatives settlement
* Tokenized deposits

Additionally, through Kinexys Digital Payments, JP Morgan has expanded its experimentation into cross-chain settlement, allowing integration with third-party blockchains such as Ethereum, Ondo Chain, and protocols like Chainlink.

FAQ:

Q: Is JPM Coin available to the public?
A: No. JPM Coin is used only for institutional transactions on a private network.

Q: Why is Chainlink involved with JP Morgan?
A: Chainlink provides the cross-chain infrastructure (CCIP) for secure blockchain interoperability in transactions like DvP.

Q: What is Ondo Finance’s role in this?
A: Ondo powers the tokenization of real-world assets (e.g., U.S. Treasuries), enabling real asset exposure on-chain.