KEY TAKEAWAYS
- Ondo Finance successfully completed a cross-chain Delivery versus Payment (DvP) test transaction on the Ondo Chain testnet, marking a significant milestone in real-world asset tokenization.
- The transaction involved Ondo’s tokenized Short-Term US Treasuries Fund and utilized Kinexys Digital Payments’ network and Chainlink’s cross-chain infrastructure.
- This achievement represents a scalable approach to cross-chain, atomic settlement of tokenized assets, enhancing security, compliance, and operational efficiency.
- The collaboration between Ondo Finance, Kinexys by J.P. Morgan, and Chainlink highlights the convergence of traditional finance and decentralized finance.
Ondo Finance has announced a significant milestone in the realm of real-world asset tokenization. The company successfully completed a cross-chain Delivery versus Payment (DvP) test transaction on the Ondo Chain testnet. This achievement was made in collaboration with Kinexys by J.P. Morgan, the financial services firm’s blockchain business unit, and Chainlink. The announcement can be found here.
The transaction utilized Ondo Chain’s testnet and involved Ondo’s tokenized Short-Term US Treasuries Fund (OUSG). It also incorporated blockchain deposit accounts on Kinexys Digital Payments’ permissioned network for payment settlement and Chainlink’s secure cross-chain orchestration infrastructure.
A First for Ondo Chain and RWA Tokenization
This milestone represents a scalable approach to cross-chain, atomic settlement of a tokenized asset between Kinexys Digital Payments’ permissioned blockchain network and Ondo Chain. It marks the first use of Ondo Chain’s infrastructure, a new Layer 1 designed to scale the tokenization of institutional-grade real-world assets. The transaction also expands Kinexys platform’s settlement integrations beyond fully private chains.
Nathan Allman, CEO of Ondo Finance, stated, “The debut transaction on Ondo Chain’s testnet with both Kinexys by J.P. Morgan and Chainlink isn’t just a major milestone, it’s a statement about the future of finance.”
Asset and Payment, Settled Cross-Chain
The transaction involved exchanging the Ondo Short-Term US Government Treasuries Fund (OUSG) as the asset leg, with Kinexys Digital Payments serving as the payment leg. The DvP solution was powered by the Chainlink Runtime Environment (CRE), a secure offchain computing environment. CRE facilitated seamless settlement between Kinexys Digital Payments and Ondo Chain’s testnet, ensuring institutional-grade security, compliance, and scalability.
Nelli Zaltsman, Head of Platform Settlement Solutions at Kinexys by J.P. Morgan, commented on the collaboration, emphasizing the benefits of connecting institutional payment solutions with both public and private blockchain infrastructures.
By leveraging blockchain for both asset and payment legs, the transaction reduced counterparty and settlement risk. Automated workflows enhanced operational efficiency, while near real-time finality improved liquidity management. Blockchain-based settlement also reduced intermediary costs and increased transparency through immutable transaction records.
Sergey Nazarov, Co-Founder of Chainlink, highlighted the significance of the collaboration, noting the convergence of traditional finance (TradFi) and decentralized finance (DeFi) as a key outcome of this initiative.
Why This Matters: Impact, Industry Trends & Expert Insights
Ondo Finance has achieved a milestone by completing a cross-chain Delivery versus Payment (DvP) test transaction, collaborating with J.P. Morgan’s Kinexys and Chainlink. This event marks a significant step in real-world asset tokenization, leveraging blockchain technology for enhanced financial operations.
Recent industry reports indicate that the tokenization of real-world assets (RWAs) is reshaping traditional finance by enhancing liquidity, transparency, and accessibility. This aligns with the news event as Ondo Finance’s collaboration demonstrates the practical application of these trends, particularly in integrating traditional finance with decentralized finance (DeFi).
A report highlights that the collaboration between Ondo Chain and Chainlink is significantly impacting the market by bridging traditional finance and DeFi through tokenization and reliable data infrastructure. This supports the significance of the news event by showcasing how Ondo’s infrastructure is facilitating institutional-grade investment and expanding market accessibility.
Explore More News:
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
