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The JPMORGAN Chase made its first transaction on the public blockchain, marking a turning point in its constant effort on the integration of traditional finances with digital infrastructure of property.
JPMORGAN CHEE conducts a significant transaction
Landmark testnet transaction, conducted in early May, included a settlement of tokenized American treasures in private and public blockchain networks. This is the most widespread interaction of an investment bank with a public blockchain infrastructure to this day, after years of developing a focused on private, allowed systems.
The transaction was performed by Kinexys, JPMORGAN’s Blockchain Division. She included the transfer of funds between two accounts on the private blockchain JPMORGAN, Kinexys Digital Payments, to settle the purchase of tokenized treasures listed on the public blockchain managed by Ondo Finance.
Settlement of a cross chain using a chain
To facilitate the procedure, the JPMORGAN has used the crossbar of the Chainlink (CCIP) cross-abrection protocol, which served as connective infrastructure that enabled interoperability between the private network of Kinexys and the public blockchain ondo. This setting enabled the execution of the delivery transaction relative to the payment (DVP), the settlement mechanism that ensures that the transfer of assets and appropriate payments occurs at the same time, alleviating the risk of another contracting party.
According to the announcement of the Society, the trial has reached a safe, atomic settlement between tokenized American treasuries, represented by OnDo’s tokens EUSG and institutional classmates for a blockchain deposit within Kinexys.
Resolving long -standing inefficiency in the industry
The transaction comes at a time of increasing interest in the tokenized real property (RWAS), because banks and property managers seek to modernize the financial settlement systems. JPMORGAN noted that the financial industry suffered an estimated $ 914 billion losses over the past decade due to failure in payment and settlement. These inefficiency, the company said, are often worsened by cross -border transactions with regulatory, geographical and complexity associated with currency.
Co -founder Chainlink Sergei Nazarov described the move as the central moment for the financial sector, stating,
“It is becoming more clear to world institutions that they have a large addressable market in the public chain community and that they need a reliable set of technical standards and the possibilities of mutual connection for a successful transaction in this new world.”
Strategic move in the midst of moving crypto policy
Although the development coincides with the evolutionary American crypto regulations, especially the introduction of the proposal of the Pro-Crypt of former President Donald Trump after a stricter attitude of Biden Administration, JPMORGAN emphasized that the initiative has been in the creation for years and is not associated with the current political climate.
The bank has long maintained a cautious approach to the public blockchain engagement, and previous experiments such as the 2024 test with Siemens limited to private networks. This latest transaction, however, signals the wider willingness of large financial institutions for public blockchain infrastructure research in the search for a more efficient, more resistant and scalable mechanisms of settlement.
Representation of the renunciation of responsibility: This article is only scheduled for informative purposes. Does not offer or intend to be used as legal, tax, investment, financial or other advice
