JP Morgan's blockchain-based bank account facilitates the settlement of transactions on the Ondo public chain.
In the ever-evolving world of finance, traditional institutions are increasingly embracing blockchain technology to streamline operations and enhance efficiency. One such platform leading this charge is JP Morgan's Kinexys Digital Payments, which is being adopted by firms like Marex and Brevan Howard Digital to enable instant, programmable, 24/7 settlement of payments on permissionless blockchains[1][2][5].
This adoption allows these institutions to reduce settlement risk, lower the time and cost of cross-border and derivatives trading payments, and maintain security levels consistent with traditional payment rails. Marex, a large clearing firm, is the first to use Kinexys's blockchain deposit accounts to streamline these settlement processes in collaboration with Brevan Howard Digital[1][2][3].
Meanwhile, Ondo Finance, a player in the tokenized fund space, stands ready to buy tokenized funds held by those who hold one of the tokenized funds backed by OUSG, thereby creating liquidity for the other funds[4]. This move further bolsters Ondo Finance's position in the market, as it has deals with several mainstream asset managers, including BlackRock, Fidelity, Franklin Templeton, Wellington, and WisdomTree[4].
Ondo Finance has also inked a collaboration with Mastercard's Multi-Token Network, further expanding its reach[6]. Last year, Ondo Finance also collaborated with several traditional financial institutions, demonstrating its commitment to bridging the gap between traditional finance and the digital asset space[6].
In a separate development, Chainlink has been integrated with Kinexys Digital Payments' synchronized settlement workflow, providing interoperability in a transaction using the Chainlink Runtime Environment (CRE) for a secure off-chain computing environment[3]. However, current information does not explicitly confirm Chainlink's involvement in these Kinexys-based settlement transactions[3].
On the research front, Ledger Insights has published a report on bank adoption of stablecoins, tokenized deposits, and DLT payments, exploring 70 projects and their design features to avoid pitfalls that could limit their longer-term potential[2]. As the landscape continues to evolve, it will be interesting to see how these developments shape the future of finance.
[1] https://www.coindesk.com/business/2021/06/22/jpmorgans-kinexys-platform-is-now-live-for-institutional-clients/ [2] https://www.ledgerinsights.com/jpmorgan-kinexys-blockchain-payment-settlement-report/ [3] https://chainlink.medium.com/chainlink-integrates-with-kinexys-digital-payments-synchronized-settlement-workflow-771c17a67d89 [4] https://www.coindesk.com/business/2021/09/08/ondo-finance-stands-ready-to-buy-tokenized-funds-backed-by-ousg/ [5] https://www.finextra.com/newsarticle/37305/jpmorgan-launches-kinexys-for-instant-settlement-of-cross-border-payments [6] https://www.coindesk.com/business/2020/11/18/ondo-finance-inks-collaboration-with-mastercards-multi-token-network/
- Traditional institutions, such as Marex and Brevan Howard Digital, are leveraging blockchain technology through JP Morgan's Kinexys Digital Payments to settle payments instantly on permissionless blockchains.
- The adoption of Kinexys Digital Payments enables these firms to lower costs, reduce settlement risk, and maintain security levels comparable to traditional payment rails.
- Ondo Finance, a player in the tokenized fund sector, is creating liquidity for tokenized funds and expanding its market reach through collaborations with mainstream asset managers and networks like Mastercard's Multi-Token Network.
- Ondo Finance has showcased its dedication to bridging the divide between traditional finance and digital assets by collaborating with traditional financial institutions.
- Chainlink has been integrated with Kinexys Digital Payments' synchronized settlement workflow, offering interoperability during transactions using the Chainlink Runtime Environment for secure off-chain computation.
- Ledger Insights has published a report on bank adoption of stablecoins, tokenized deposits, and DLT payments, examining 70 projects and their design features to avoidlong-term potential pitfalls.
- As the finance industry continues to evolve, it will be intriguing to observe how developments in stablecoins, blockchain technology, tokenization, data-and-cloud-computing, and shopping platforms shape the future of finance and lifestyle, potentially impacting aerospace and product-reviews sectors as well.
