- Delivery versus Payment solution is the debut transaction on Ondo Chain’s testnet
- Settlement of Ondo Finance’s Tokenized Fund (OUSG) with J.P. Morgan’s permissioned Kinexys Digital Payments network on the Ondo Chain network was facilitated using Chainlink as the secure cross-chain orchestration layer.
- The transaction highlights a scalable solution for Kinexys Digital Payments settlement rails to support the growing Real-World Asset market across public blockchains.
Chainlink, Kinexys by J.P. Morgan and Ondo Finance, announced the completion of a cross-chain Delivery versus Payment (DvP) test transaction. The transaction utilized blockchain deposit accounts on Kinexys Digital Payments’ permissioned network for payment settlement, Ondo Chain’s Layer 1 blockchain purpose-built to scale the tokenization of real-world assets, Ondo’s tokenized US Treasuries Fund (OUSG), and Chainlink’s secure cross-chain orchestration infrastructure.
“Kinexys Digital Payments is designed to support J.P. Morgan’s institutional clients by enhancing the current payment experience, while also anticipating clients’ evolving payments needs as they engage in transactions on emerging infrastructures, including public blockchain,” said Nelli Zaltsman, head of Platform Settlement Solutions for Kinexys Digital Payments at Kinexys by J.P. Morgan, in a statement. “By securely and thoughtfully connecting our institutional payments solution with both external public and private blockchain infrastructures seamlessly, we can offer our clients and the broader financial ecosystem a wider range of benefits and scalable solutions for settling transactions. The demonstrated cross-chain solution is a testament to what can be achieved through strong collaboration across diverse segments of the Web3 ecosystem, and we are pleased to have worked with Ondo and Chainlink to bring this to life as the first transaction on Ondo Chain testnet.”
DvP transactions are difficult to execute in traditional finance due to fragmented systems and manual workflows, leading to costly settlement delays and increased counterparty risk. In just the past decade, it is estimated that payment and settlement failures have cost market participants at least $914 billion. DvP issues are further compounded in cross-border transactions by complex regulatory, geographical, and currency limitations.
By leveraging blockchain on both the asset and payment legs of the transaction and Chainlink’s oracle infrastructure for orchestration of atomic DvP settlement, assets and payments can be exchanged simultaneously cross-chain, reducing counterparty and settlement risk. Automated workflows at all points of the transaction enhance operational efficiency, while near real-time finality supported by the asset and payment infrastructures improves liquidity management. Additionally, blockchain-based settlement reduces intermediary costs and increases transparency through immutable, verifiable transaction records that offer real-time visibility into asset movements.