JPMorgan completes a digitized government bond transaction through Ondo Finance and Chainlink.
A Giant Leap for JPMorgan: First Public Blockchain Transaction
Exciting news is brewing in the blockchain world as JPMorgan Chase takes a significant stride, partnering with Ondo Finance and Chainlink to settle its first transaction on a public blockchain. This marks a significant milestone for JPMorgan, boldly stepping into the digital asset scene.
On Wednesday, the bank announced the historical event, carried out in early May. JPMorgan's blockchain division, Kinexys, moved funds between accounts on its private network to settle a purchase of tokenized U.S. Treasuries on Ondo Finance's public platform, all thanks to the technology provided by Chainlink.
According to Ondo Finance, the transaction represented the first cross-chain, atomic Delivery versus Payment settlement of a tokenized asset on the Ondo Chain testnet. This groundbreaking event connected Kinexys' permissioned bank settlement infrastructure with the public Layer 1 Ondo Chain via Chainlink's cross-chain technology.
The process relied on Chainlink's interoperability protocol to trigger the payment, enabling communication between JPMorgan's private system and the public blockchain. Although JPMorgan has previously explored blockchain applications outside its proprietary network, this marks the first time the bank has built an operational framework to interact directly with public blockchains.
While JPMorgan's step into the public blockchain realm is momentous, it's just one piece of a larger puzzle. Traditional financial institutions are actively warming up to the crypto space. Fidelity is testing a stablecoin, Morgan Stanley is exploring crypto trading through E*Trade, and BlackRock is expanding its tokenized treasury offerings. This broader shift in the U.S. regulatory climate has paved the way for JPMorgan's bold move.
Discussions between Kinexys and Chainlink have been ongoing for more than two years, forming part of the bank's long-term strategy. As the market watches with bated breath, the future seems ripe with possibilities for continued partnerships, collaborations, and digital asset transactions.
Wealthy Clients Shift Gears: Gold and Crypto Over US Dollar-Based Assets
Amid this escalatingcrypto activity, traditional institutions aren't holding back. JPMorgan's move is emblematic of the broader trend, as wealthy clients increasingly look to gold and cryptocurrencies as alternatives to US dollar-based assets.
Crypto Mining Funds Energy Upgrades in Kazakhstan
Coinciding with JPMorgan's news, Kazakhstan is proposing a 70/30 model to fund energy upgrades through crypto mining. This innovative strategy opens a new chapter in the interplay between digital assets and traditional energy markets.
Sources:
- JPMorgan Makes First Public Blockchain Transaction
- Chainlink, Ondo Finance Partner with JPMorgan to Settle First Public Blockchain Transaction for Tokenized U.S. Treasuries
- JPMorgan Completes First Public Blockchain Settlement by Buying Tokenized U.S. Treasuries
- JPMorgan deals first cross-chain crypto transaction on Ondo Chain
- JPMorgan Completes First Blockchain Cross-Chain Transaction Using Chainlink and Ondo Finance
- The transaction on JPMorgan's first public blockchain deal was enabled by Chainlink's cross-chain technology, connecting Kinexys' private system with the public Layer 1 Ondo Chain.
- In addition to JPMorgan's historical move, traditional financial institutions like Fidelity, Morgan Stanley, and BlackRock are also exploring crypto-related activities.
- Kazakhstan is proposing a 70/30 model to fund energy upgrades through crypto mining, marking a new chapter in the interplay between digital assets and traditional energy markets.
- The crypto mining industry is not only contributing to digital finance but also influencing real-world technology and economic sectors, as seen in this energy upgrade initiative.
