JPMorgan Uses Chainlink and Ondo to Process First Tokenised Treasury Deal on Public Blockchain

JPMorgan Breaks Private Blockchain Barrier

JPMorgan Chase has taken its first step beyond its own permissioned ledger by settling tokenised U.S. Treasuries on a public blockchain.

The transaction was handled by Kinexys, the bank’s blockchain arm, in early May and connected to Ondo Finance’s public network via Chainlink’s interoperability system.

How Did the Cross-Chain Settlement Work?

Funds were moved from one Kinexys account to another on JPMorgan’s private chain to pay for tokenised treasuries listed on Ondo Finance.

Chainlink’s Cross-Chain Interoperability Protocol (CCIP) validated and executed the transfer between the closed and public ledgers.

Chainlink’s Sergey Nazarov noted the system is poised for wider roll-out.

“This is not just another proof of concept.”

What Makes Tokenised Treasuries Attractive?

Blockchain-based treasuries mirror traditional government debt but offer programmable features and round-the-clock settlement.

They are increasingly used in decentralised finance for yield opportunities.

Real-world asset tokenisation now exceeds $12 billion in total-value locked across more than 80 platforms, reflecting growing institutional interest in digital versions of cash-equivalent instruments.

Why Does This Matter for Institutional Finance?

Until now, JPMorgan’s distributed-ledger efforts focused on JPM Coin—later rebranded to Kinexys—operating within a closed network that processes roughly $2 billion in daily volume and oversees $1.5 trillion in derivatives assets.

Linking that infrastructure to a public ledger marks a shift towards interoperability.

Colin Cunningham, head of tokenisation at Chainlink Labs, explained,

“It was the first time a major global bank has connected its core payment systems to a public blockchain.”

Could This Signal Broader Adoption?

JPMorgan insists the project has been years in the making, independent of recent regulatory changes.

Ondo Finance CEO Nathan Allman said,

“The debut transaction… isn’t just a major milestone, it’s a statement about the future of finance.”

As more banks explore decentralised finance, this hybrid model of public-private integration may set a template for real-world asset settlement at scale.