Chainlink, JPMorgan’s Kinexys, and Ondo Finance have made history after completing the first crosschain delivery versus payment (DvP) settlement involving a permissioned payment network and a public testnet. Chainlink confirmed the breakthrough transaction on Thursday via an official blog post.Â
The DvP transaction is a process that confirms the exchange of assets upon the fulfilment of the two sides of a deal. As announced, Kinexys Digital Payments, a permissioned network belonging to international investment bank, JPMorgan, and Ondo Chain’s testnet all participated in the pilot program.
Furthermore, Chainlink’s Runtime Environment (CRE), an off-chain compute layer built for interoperable financial infrastructure facilitated the transaction. Also, OUSG, the tokenized US Treasury fund of Ondo, played a key role in the settlement, as it was exchanged for payment through Kinexy’s platform.
The DVP test facilitated the transfer of OUSG and simultaneous fiat payment on the Kinexys Digital Payments. A deep insight into the test by Chainlink disclosed that the CRE managed the workflow and confirmed escrow events on the Ondo chain.
Consequently, the compute layer instigated payment proceedings through Kinexys before carrying out the final settlement. According to Chainlink, CRE is configurable and effective in settling various types of DvP transactions of different complexity.
This also includes single-chain and multi-chain DVP transactions that facilitate complex financial actions with minimal counterparty and settlement risk. It is worth mentioning the two networks only facilitated transaction instructions.
For the two networks, the test is a breakthrough. For Ondo Chain testnet, it is the first successful transaction executed on the network. On the flip side, the transaction proves Kinexy’s settlement functionalities to public chains.
How Chainlink is aiming to become a force to reckon with in tokenized RWA sector
In recent times, Chainlink has pushed various initiatives to advance the tokenized RWA sector. In June 2024, Chainlink partnered with Fidelity International and Sygnum to support the integration of blockchain technology and fund management.
Meanwhile, the latest development surfaced as TradFi and decentralized finance (DeFi) are gradually connecting. Currently, the growing tokenized RWA sector is now worth more than $23 billion on public blockchain calls for crosschain settlement solutions.
As per a report by Binance Research, the RWA market in Q1 of 2025 has soared by more than 260% from $8.6 billion at the start of the year. Leading this massive surge is private credit which controls 58% of the market share with tokenized US Treasury debt accounting for 34%.
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