JPMorgan Completes First Public Tokenized Treasury Transaction with Chainlink and Ondo

JPMorgan Chase has successfully completed its first tokenized U.S. Treasury transaction on a public blockchain in partnership with Ondo and Chainlink. Fortune Magazine reported this today, confirming that the bank completed the transaction on Ondo's public blockchain. This marks the first time JPMorgan has extended its internal blockchain platform, Kinexys, to interact directly with a public network. Details of the JPMorgan Transaction The transaction involved exchanging a tokenized U.S. Treasuries Fund (OUSG), which was hosted on the Ondo Chain testnet, for a payment processed through Kinexys, JPMorgan's private blockchain. https://twitter.com/chainlink/status/1922646147551605090 Chainlink's technology acted as the communication layer between the two systems. Its Runtime Environment coordinated the Delivery versus Payment (DvP) settlement, ensuring that the exchange of tokens and funds occurred securely across both blockchains. This setup allowed for the end-to-end completion of a cross-chain transaction. Until now, JPMorgan had limited its blockchain activities to private platforms such as Onyx, which has processed over $300 billion in tokenized repo trades. In contrast, this transaction was publicly visible and executed on a decentralized network. Nelli Zaltsman, who leads platform settlement at Kinexys, stressed that this project was not a quick response to changing political trends, but part of a longer-term strategy. She noted that conversations with Chainlink began two years ago and led to the development of a structure now being prepared for broader production use. Growing Institutional Interest in Tokenization The move comes at a time when institutional interest in tokenized assets is accelerating. The market for tokenized U.S. Treasuries has grown to nearly $2.4 billion, though it remains far smaller than the $180 billion stablecoin market.  JPMorgan analysts believe tokenized Treasuries could act as a reliable source of yield and may eventually compete with stablecoins in crypto collateral use cases. However, regulatory restrictions, including rules that limit investment access to accredited investors, could slow down adoption.  Notably, this recent development builds on JPMorgan's earlier blockchain experiments. In 2022, the bank took part in a decentralized finance trial on the Polygon blockchain through a project led by Singapore's central bank. In 2023, it completed a tokenized collateral settlement with BlackRock and Barclays via Onyx. Other major institutions are moving in the same direction. BlackRock, which launched its BUIDL fund on Ethereum, is already delving into tokenization soon, recently meeting with U.S. regulators to discuss the future of tokenization. Goldman Sachs , Fidelity, Franklin Templeton, and Deutsche Bank have all launched or explored similar initiatives. Most recently, The Crypto Basic reported that Citi and SDX formed a partnership to tokenize private markets, expecting to proceed with the initiative by Q3 2025. In March, CME Group also partnered with Google Cloud to pursue tokenization.