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Chainlink, JPMorgan’s Kinexys, and Ondo Finance have pioneered a groundbreaking crosschain delivery versus payment (DvP) settlement, bridging permissioned payment networks with public real-world asset (RWA) blockchains.
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This innovative transaction utilized Chainlink’s Runtime Environment (CRE) to seamlessly coordinate asset exchange between Ondo Chain’s tokenized US Treasury fund and Kinexys’ fiat payment platform, marking a significant step in TradFi and DeFi integration.
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According to Chainlink, “CRE enables complex financial activity with reduced counterparty and settlement risk by supporting single-chain and multichain DvP transactions of varying complexity.”
Chainlink, JPMorgan’s Kinexys, and Ondo Finance complete a first-of-its-kind crosschain DvP settlement, advancing tokenized real-world asset integration with permissioned payment networks.
Innovative Crosschain DvP Settlement Bridges TradFi and DeFi Ecosystems
The recent crosschain delivery versus payment (DvP) settlement represents a milestone in financial technology, showcasing how permissioned and public blockchain networks can interact securely and efficiently. The transaction involved the exchange of Ondo Finance’s OUSG token, representing tokenized US Treasurys, for fiat payments processed through JPMorgan’s Kinexys Digital Payments platform. This was orchestrated by Chainlink’s Runtime Environment (CRE), an offchain compute layer designed to facilitate interoperable financial workflows.
The CRE’s role was pivotal: it verified escrow events on the Ondo Chain testnet, initiated payment instructions on Kinexys, and coordinated the final settlement, ensuring that only transaction instructions—not sensitive data—were transmitted between networks. This approach minimizes counterparty risk and enhances settlement finality, crucial for institutional-grade financial operations.
Chainlink Runtime Environment: A Catalyst for Multichain Financial Transactions
Chainlink’s CRE is engineered to handle complex DvP transactions across multiple blockchains and payment systems. Its configurability allows it to support diverse financial instruments and settlement scenarios, making it a versatile tool for bridging traditional finance (TradFi) and decentralized finance (DeFi). By enabling atomic settlement processes, CRE reduces settlement risk and operational friction, which are key barriers to broader adoption of tokenized assets.
Chainlink’s announcement emphasized that this successful test on the Ondo Chain testnet expands Kinexys’ capabilities beyond private chains, signaling growing institutional interest in interoperable blockchain solutions.
Real-World Asset Market Experiences Explosive Growth
The crosschain settlement comes amid a surge in the tokenized real-world asset (RWA) market, which has grown by over 260% in the first half of 2025, reaching a valuation exceeding $23 billion. Binance Research highlights tokenized private credit as the dominant segment, comprising approximately 58% of the market, with tokenized US Treasury debt making up 34%.
This rapid expansion underscores the increasing demand for blockchain-based asset tokenization, driven by enhanced liquidity, transparency, and accessibility. Institutional players are actively entering this space, exemplified by Pan-European fund manager APS’s recent acquisition of €3 million in tokenized bonds linked to Italian residential properties via MetaWealth.
Implications for Institutional Adoption and Market Infrastructure
The integration of permissioned payment networks with public RWA blockchains through solutions like Chainlink’s CRE signals a maturation of blockchain infrastructure tailored for institutional needs. By enabling secure, efficient, and atomic crosschain settlements, these advancements reduce operational risks and open pathways for more complex financial products to be tokenized and traded on-chain.
As the RWA market continues to expand, such technological innovations will be critical in fostering trust and scalability, encouraging further participation from traditional financial institutions and asset managers.
Conclusion
The successful crosschain DvP settlement executed by Chainlink, JPMorgan’s Kinexys, and Ondo Finance marks a significant advancement in bridging traditional and decentralized finance. By leveraging Chainlink’s Runtime Environment, the transaction demonstrated how complex, multichain financial workflows can be securely and efficiently coordinated, reducing settlement risk and enhancing interoperability. With the RWA market experiencing unprecedented growth, these developments pave the way for broader institutional adoption of tokenized assets and more integrated financial ecosystems.
