The decentralized oracle network Chainlink, the financial platform Kinexys from JP Morgan Chase, and the Ondo Finance protocol successfully executed an innovative cross-chain transaction based on the Delivery versus Payment (DvP) principle. This agreement was made possible by utilizing the Chainlink Runtime Environment (CRE), which coordinated settlements between two isolated blockchains.
This is reported by Finway
The DvP Mechanism and the Role of CRE in the Transaction
The DvP method ensures that the transfer of an asset and payment occur simultaneously, minimizing risks for both parties. No participant can end up without either the asset or the funds. The test involved the Kinexys Digital Payments network and the Ondo Chain project, which specializes in tokenized real-world assets (RWA). The CRE infrastructure was used for settlement—a layer of off-chain computation that integrates and coordinates actions across multiple blockchains. This ensures atomic swaps, meaning transactions are either executed fully or not at all.
Chainlink noted that the use of DvP in traditional finance (TradFi) is often accompanied by inefficiencies due to the isolation of infrastructures and the need for manual intervention. These shortcomings are particularly evident in cross-border operations. Blockchain technology overcomes such limitations, facilitating process automation and enhancing transaction security.
“Networks provide a reliable foundation for optimizing DvP settlements. When the asset and payment components of a transaction are settled on-chain and organized using Chainlink infrastructure, transactions can be executed atomically across networks,” the release stated.
Among the advantages of the new solution are simplified account auditing, automated workflows, and the ability to settle transactions almost in real-time. For the test transaction, the parties used the tokenized fund of short-term U.S. Treasury bonds OUSG, which is one of Ondo Finance’s key products.
Prospects for the Development of Tokenized Assets and CRE
Chainlink emphasized that the Chainlink Runtime Environment can be applied to various DvP agreements, ensuring their efficiency and security. According to company representatives, the economy of tokenized assets is expected to grow rapidly in the coming years, and with the expansion of public and private blockchains, the need for organizing complex DvP transactions will only increase. The CRE architecture is designed to facilitate such complex interactions, and the recent collaboration between JP Morgan, Ondo Finance, and Kinexys is just the beginning of significant changes in the digital finance sector.
“The economy of tokenized assets is set to experience exponential growth in the coming years, and combined with the increasing number of public and private blockchains, the importance of being able to organize complex DvP transactions in various DLT environments will only grow. CRE serves as the foundation for enabling these complex interactions, and the recent collaboration between JP Morgan and Ondo Finance with Kinexys is just the tip of the iceberg,” Chainlink stated.
According to a recent report, the capitalization of the tokenized asset sector is projected to reach $21 billion by April 2025, which is 245 times higher than last year’s figures. This indicates a rapid increase in interest in tokenization and the use of blockchain solutions in the financial sector.
