JP Morgan's blockchain-based bank account facilitating settlements for Ondo public chain transactions.
In a significant move towards the integration of traditional finance and blockchain technology, JPMorgan's Kinexys Digital Payments platform is being adopted by various institutions to facilitate near-instant settlement on both permissioned and permissionless blockchains.
One such example is Marex, a global clearing firm, which has integrated Kinexys to modernize its payment infrastructure, reduce settlement risk, and enable blockchain-based real-time settlement. This shift from legacy payment rails to continuous digital clearing mechanisms marks a significant step forward in the adoption of blockchain technology by traditional finance institutions.
Kinexys enables settlement through blockchain deposit accounts, allowing institutions to move cash and digital assets efficiently on blockchain networks that are compliant with the permissions required by the participants. This platform supports programmable payments that execute automatically on smart contract networks, harnessing the advantages of blockchain for financial market infrastructure.
Chainlink, a decentralized oracle network, plays a complementary role in this process. Although not explicitly detailed in the provided search results, Chainlink is generally known in the industry for its ability to feed reliable, tamper-proof real-world data into blockchain smart contracts. In settlement processes involving Kinexys or similar blockchain-based financial infrastructures, Chainlink oracles can provide critical external data—such as price feeds, verification signals, or settlement conditions—that ensure smart contracts execute securely and correctly both on permissioned and permissionless blockchains. Thus, Chainlink acts as an indispensable bridge between off-chain data and on-chain execution, enhancing trust and automation in digital payment settlements.
Ondo Finance, a tokenized money market fund, is one of the institutions that have adopted Kinexys Digital Payments. The fund, which is backed by other tokenized money market funds including those from BlackRock, Fidelity, Franklin Templeton, Wellington, and WisdomTree, used JP Morgan's Kinexys Digital Payments to settle a transaction for its OUSG tokenized money market fund on the Ondo blockchain.
The report by Ledger Insights includes information about 70 projects in the field, exploring design features and avoiding pitfalls that could limit their longer-term potential. The report also covers the bank adoption of stablecoins, tokenized deposits, and DLT payments.
With Kinexys Digital Payments, transaction volumes have surpassed $1.5 trillion to date. JP Morgan serves thousands of institutions and does business with 90% of Fortune 500 firms, according to its annual report. The integration of Kinexys Digital Payments on more permissionless chains may encourage some institutions to sidestep stablecoins, offering a more traditional and regulated approach to digital payments on blockchain networks.
References:
[1] Ledger Insights. (n.d.). Bank Adoption of Stablecoins, Tokenized Deposits, and DLT Payments. Retrieved from https://ledgerinsights.com/bank-adoption-of-stablecoins-tokenized-deposits-and-dlt-payments/
[3] Ledger Insights. (n.d.). JPMorgan's Kinexys Digital Payments Integrated with Chainlink. Retrieved from https://ledgerinsights.com/jpmorgans-kinexys-digital-payments-integrated-with-chainlink/
- JPMorgan's Kinexys Digital Payments platform is being adopted by various institutions, including Ondo Finance, to enable blockchain-based real-time settlement, reducing settlement risk and modernizing payment infrastructure.
- The integration of Kinexys Digital Payments platform on more permissionless chains may encourage some institutions to sidestep stablecoins, offering a more traditional and regulated approach to digital payments using blockchain networks.
- Chainlink, a decentralized oracle network, plays a complementary role in this process by providing reliable, tamper-proof real-world data to blockchain smart contracts, enhancing trust and automation in digital payment settlements.
- The report by Ledger Insights includes information about 70 projects in the field, exploring design features and avoiding pitfalls that could limit their longer-term potential, ranging from bank adoption of stablecoins to tokenized deposits and DLT payments.
- In the aerospace industry, technology advancements like blockchain can lead to new insights and innovative projects, such as improving the traceability and security of supply chain operations, which is essential for mission-critical tasks.
