JPMorgan Chase has completed a blockchain transaction outside its private system for the first time. The deal involved tokenized U.S. Treasuries and was settled using public blockchain infrastructure, Fortune reported. The move marks a change in the bank’s approach to digital assets, which has long focused on private networks.

JPMorgan Uses Chainlink for Blockchain Payment

The transaction occurred in early May. It was conducted by Kinexys, JPMorgan’s blockchain division. The bank moved funds between two accounts on its private blockchain. This payment was to settle the purchase of tokenized treasuries listed on a public blockchain run by Ondo Finance. To make the payment work, JPMorgan used Chainlink, a system that connects private and public blockchains.

Tokenized treasuries are blockchain-based versions of money market funds. They offer exposure to government debt and are often used for yield generation in crypto systems.

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Private Blockchain Connects to Public Ledger

JPMorgan’s blockchain efforts were previously limited to its private network, with past trials like a 2024 test with Siemens remaining experimental. But this latest move is its first real connection to a public blockchain.

“This is not just another proof of concept,” said Chainlink’s Sergey Nazarov, who noted the system is nearing broader use.

The shift comes amid changing U.S. crypto policy, with Trump introducing industry-friendly measures after Biden’s earlier crackdown. Still, JPMorgan says the project has been in the works for years and isn’t tied to recent political changes.

This article was written by Tareq Sikder at www.financemagnates.com.TrendingRead More

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