Breaking: JPMorgan Chase Makes a Leap into Web3
JPMorgan Completes Initial Tokenized U.S. Treasury Deal on Public Blockchain, Employing Chainlink and Ondo Finance Technology
JPMorgan Chase, the financial juggernaut, is making waves in the blockchain world with its inaugural public blockchain transaction. This groundbreaking move signifies a deeper dive into the Web3 ecosystem.
In an announcement this week, JPMorgan successfully settled a transaction involving tokenized U.S. Treasuries on Ondo Finance, with Chainlink connecting private and public networks for a seamless exchange. This is a significant step in JPMorgan's decentralized finance project, Kinexys, aimed at merging traditional finance with DeFi.
According to Ondo Finance CEO Nathan Allman, this milestone goes beyond being just a major step; it's a beacon for the future of finance. While JPMorgan and Chainlink haven't commented on Decrypt's request for more details, Colin Cunningham, head of tokenization at Chainlink Labs, shared his thoughts. He stated that this move indicates the first time a major global bank has connected its core payment systems to a public blockchain, signifying a strategic move towards a future where real-world assets like U.S. Treasuries can move effortlessly across public and private chains.
This adventure into Web3 comes as real-world asset tokenization gathers momentum, particularly among institutional investors. As of now, the total value locked in RWAs (Real-World Assets) on blockchains surpasses $12 billion, with assets distributed across over 80 DeFi platforms, according to DeFi Llama data. Meanwhile, BlackRock's USD Institutional Digital Liquidity Fund holds nearly $3 billion, up approximately 19% in the past month as investors continue to pour funds into tokenized treasuries, as per data from rwa.xyz.
JPMorgan's foray into Web3 isn't new; the bank debuted a private blockchain called JPM Coin in 2019. Now known as Kinexys, this platform has processed almost $2 billion in daily transaction volumes and has amassed $1.5 trillion in underlying assets from derivatives contracts, as per JPMorgan's statement last year. Kinexys, a distributed-ledger technology-driven platform, aims to facilitate high-speed, cross-border transactions and reduce costs for builders and traders.
It's worth noting that JPMorgan isn't alone in its Web3 journey. Earlier this month, Citi partnered with SDX to tokenize private companies' shares for affluent investors, adding another player to the evolving landscape of decentralized finance.
Stay tuned as we continue to monitor this exciting development in the world of finance and blockchain.
[Editor's Note: This article has been updated to include Colin Cunningham's quote.
[Disclaimer: This article reflects information Available as of May 14, 2025. The content is provided for informational purposes only, and should not be construed as professional financial advice or endorsement of any kind.
- JPMorgan Chase's inaugural public blockchain transaction marks a significant step into the Web3 ecosystem, showcasing their interest in blockchain technology.
- The settlement of tokenized U.S. Treasuries on Ondo Finance using Chainlink signals JPMorgan's decentralized finance project, Kinexys, an attempt to merge traditional finance with DeFi.
- Colin Cunningham, head of tokenization at Chainlink Labs, stated that JPMorgan's move marks the first time a major global bank has connected its core payment systems to a public blockchain.
- Real-world asset tokenization, particularly among institutional investors, is gaining momentum, with the total value locked in RWAs on blockchains surpassing $12 billion.
- BlackRock's USD Institutional Digital Liquidity Fund holds nearly $3 billion, reflecting growing interest in tokenized treasuries.
- Kinexys, JPMorgan's distributed-ledger technology-driven platform, aims to facilitate high-speed, cross-border transactions and reduce costs for builders and traders.
- Citi isn't the only financial institution embarking on a Web3 journey; earlier this month, they partnered with SDX to tokenize private companies' shares for affluent investors, adding another player to the evolving landscape of decentralized finance.
