Kinexys Torches Old Finance With First Tokenized Treasury Launch on Ondo Chain
Wall Street’s ivory tower just got a blockchain-powered wrecking ball. Kinexys—the fintech upstart that laughs at settlement times—just dropped the first tokenized treasury product on Ondo’s institutional-grade chain.
Why it matters: Forget ’baby steps’—this is TradFi’s running leap into DeFi. Real-world assets meet 24/7 markets, and suddenly that 3-day settlement window looks positively medieval.
The cynical take: Banks will either adopt this or spend $20M on a working group to explain why they can’t. Meanwhile, the smart money’s already front-running their FOMO.
Kinexys and Chainlink Bridge TradFi and DeFi with Tokenized Treasury Test
According to the announcement, the asset in the transaction was Ondo Finance’s Short-Term U.S. Government Treasuries Fund (OUSG), a tokenized treasury product, while Kinexys served as the payment leg, settling through blockchain deposit accounts on its digital payments network.
Chainlink’s role in the transaction was central. Its secure off-chain computing system, the Chainlink Runtime Environment (CRE), orchestrated the atomic exchange.
The system integrated directly with Kinexys’ synchronized settlement workflow to ensure seamless coordination between the two networks, maintaining high institutional standards for security and compliance.
The Head of Platform Settlement Solutions at Kinexys, Nelli Zaltsman, said, “Kinexys Digital Payments is designed to support J.P. Morgan’s institutional clients by enhancing the current payment experience while anticipating future needs.”
“By securely connecting with both public and private blockchain infrastructure, we can offer scalable solutions for settlement. This first transaction on Ondo Chain testnet is a strong example of what’s possible through collaboration,” he added.
The successful DvP settlement addresses long-standing challenges in traditional finance, where fragmented systems and manual workflows often cause costly delays. Cross-border transactions are especially complex due to differing regulations and currencies.
By settling both asset and payment legs on-chain, counterparty and settlement risks are reduced, while liquidity management and transparency are improved.
We’re excited to announce the successful completion of a cross-chain Delivery versus Payment (DvP) transaction in collaboration with Kinexys by J.P. Morgan (@jpmorgan) and @OndoFinance.https://t.co/W2IC8NeO18
This milestone marks the first-of-its-kind cross-chain, atomic… pic.twitter.com/0J1tA3AYWk
Sergey Nazarov, Co-founder of Chainlink, commented on the broader implications, saying, “This is a clear sign of the TradFi and DeFi convergence we’ve talked about for years. Chainlink was built to enable secure, institutional-grade transactions across multiple blockchains. This collaboration with Kinexys and Ondo shows that institutions now recognize the public blockchain community as a major opportunity.”
The Kinexys platform has processed over $1.5 trillion in notional value to date, with daily volume averaging more than $2 billion.
Institutional Tokenization Accelerates as JPMorgan Deepens Web3 Involvement
JPMorgan’s tokenized treasury trade on Ondo Chain marks a key moment in the growing institutional embrace of blockchain-based real-world assets (RWAs).
The MOVE comes as the total value locked in RWAs across DeFi platforms surpasses $12 billion, according to DeFi Llama, showing surging interest from large players.
BlackRock’s USD Institutional Digital Liquidity Fund alone now holds close to $3 billion, up 19% over the past month, per rwa.xyz data.
JPMorgan has been active in this space since launching its private blockchain in 2019, later rebranded as Kinexys. The platform now processes roughly $2 billion in daily transaction volume, backed by $1.5 trillion in derivatives exposure.
Ripple and BCG project the tokenized RWA market to reach $18.9 trillion by 2033, growing at a 53% CAGR.
In a recent @Ripple report, findings show tokenized real-world assets are projected to surge from $0.6 trillion today to $18.9 trillion by 2033.#Tokenization #RWAshttps://t.co/yDzO0a7YaP
The financial sector is in the first phase of adoption, focused on familiar instruments like treasuries and money market funds.
As infrastructure matures and regulation advances, the shift toward tokenizing complex assets such as private credit and real estate is already underway.
