JPMorgan, together with Ondo Finance, successfully tested crosschain settlements, marking a significant step in the realm of tokenized assets.
Test Settlements with Tokenized Assets
The experiment utilized tokenized U.S. Treasurys, demonstrating the feasibility of settlements between two distinct blockchain systems—one public and one permissioned. This delivery versus payment (DvP) transaction linked JPMorgan’s Kinexys Digital Payments network with Ondo Chain’s public testnet.
Chainlink Protocols for Secure Transactions
Chainlink deployed its Cross-Chain Interoperability Protocol and offchain compute system, Chainlink Runtime Environment (CRE), to ensure secure settlement. CRE managed the transaction logic, ensuring instant and verifiable execution without compromising security.
Rising Demand for Crosschain Financial Infrastructure
Public blockchains currently host over $23 billion in tokenized real-world assets. The growth in this figure underscores the need for tools like Chainlink’s CCIP and CRE. Financial institutions are increasingly recognizing the benefits that these technologies can offer.
This successful testing of tokenized asset settlement illustrates how traditional and decentralized finance can work together, creating more efficient and transparent financial networks.
