JP Morgan's blockchain-based bank account facilitating settlements for Ondo public chain transactions
In the ever-evolving world of digital payments, Kinexys Digital Payments by J.P. Morgan continues to make waves, processing an average of $3 billion daily and surpassing $2 trillion in total notional value to date. The platform, designed to leverage blockchain technology for improved payment efficiency, has seen a 10x increase in transaction volumes year-over-year and serves clients across five continents.
However, when it comes to the availability and timeline for Kinexys Digital Payments to be settled on more permissionless blockchains, there seems to be no clear public information or update as of August 2025. The recent major news concerning the acquisition of CheckMatch, an inter-lockbox network from Kinexys by J.P. Morgan, by Deluxe to extend digital lockbox payment capabilities, does not directly address settlement on more permissionless blockchains.
Ondo Finance, a player in the digital payments sphere, has been making strides of its own. The company has inked a collaboration with Mastercard's Multi-Token Network and used JP Morgan's Kinexys Digital Payments to settle a delivery versus payment transaction for its OUSG tokenized money market fund on the Ondo blockchain. Ondo Finance has also entered collaborations with several mainstream asset managers, including BlackRock, Fidelity, Franklin Templeton, Wellington, and WisdomTree. The OUSG fund, backed by other tokenized money market funds from these institutions, could potentially be a step towards using permissionless blockchains for institutional payments.
Meanwhile, Chainlink's role in the digital payments landscape is becoming increasingly significant. The company was integrated with Kinexys Digital Payments' synchronized settlement workflow, providing interoperability using the Chainlink Runtime Environment (CRE) for secure off-chain computing and coordinating activities across blockchains and existing systems. Chainlink was also instrumental in Ondo Finance's transaction, facilitating the integration of a bank account on the permissioned Kinexys blockchain for payments on a permissionless blockchain.
As the adoption of stablecoins, tokenized deposits, and DLT payments by banks becomes more prevalent, Ledger Insights has published a report exploring 70 projects and design features to avoid pitfalls. The report underscores the momentum building for tokenized collateral to be used for margin payments in traditional finance, particularly for derivatives.
JP Morgan, with its vast network serving thousands of institutions and doing business with 90% of Fortune 500 firms, according to its annual report, has proposed a path towards standards for enabling payments on permissionless chains using deposit tokens. However, no specific timeline for this proposed path has been shared publicly.
In summary, Kinexys Digital Payments is scaling significantly with growing volume and global reach. While the platform is rooted in blockchain technology, it appears primarily focused on private or permissioned blockchain environments tied to institutional payments. No explicit timeline or current status about integration with or settlement on additional permissionless blockchains was found in recent updates as of August 2025.
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- The integration of Chainlink with Kinexys Digital Payments' synchronized settlement workflow signifies a significant step towards achieving interoperability between different blockchains and existing systems, making transactions more secure and efficient.
- Ondo Finance's collaboration with Mastercard's Multi-Token Network and JP Morgan's Kinexys Digital Payments exemplifies the potential use of permissioned blockchains for institutional payments, possibly paving the way for more widespread adoption of permissionless blockchains in the future.
- The recent acquisition of CheckMatch by Deluxe does not directly address the availability of Kinexys Digital Payments on more permissionless blockchains, leaving the question about possible expansion unanswered as of August 2025.
- Ledger Insights' report on 70 projects exploring ways to avoid pitfalls in the adoption of stablecoins, tokenized deposits, and DLT payments by banks has highlighted the growing momentum towards using tokenized collateral for margin payments in traditional finance and derivatives.
- JP Morgan, the financial giant with a massive network serving thousands of institutions, has proposed a path towards standards for facilitating payments on permissionless chains using deposit tokens. However, details regarding the specific timeline for implementing these standards remain undisclosed.
