JPMorgan Chase has completed its first blockchain transaction outside its private system, marking a significant shift in its digital asset strategy that previously focused solely on private networks. The deal, reported by Fortune, involved tokenized U. S. Treasuries and was settled using a public blockchain infrastructure maintained by Ondo Finance. The transaction took place in early May and was executed by Kinexys, JPMorgan’s blockchain division. The bank transferred funds between two accounts on its private blockchain to settle the purchase of the tokenized treasuries listed on the public blockchain. To enable this cross-network payment, JPMorgan employed Chainlink, a technology that bridges private and public blockchains. Tokenized treasuries are blockchain-based representations of money market funds, providing investors exposure to government debt. These instruments are often used for yield generation, which refers to earnings from an investment, typically expressed as interest or dividends over a specified period, excluding price changes.

In crypto ecosystems, yields serve as a measure of returns from various investment products, including fixed income and stocks. Previously, JPMorgan’s blockchain activities were confined to its private network, with experimental trials such as a 2024 test with Siemens remaining limited in scope. This latest transaction marks the bank’s initial real linkage to a public blockchain—a distributed ledger technology maintained across multiple computers, ensuring openness, verifiability, and resistance to tampering or data manipulation. Chainlink’s Sergey Nazarov emphasized that this is more than a mere proof of concept and indicated that the system is approaching broader adoption. This development aligns with evolving U. S. cryptocurrency policies, where measures favorable to the industry have emerged under the Trump administration following regulatory crackdowns during Biden’s tenure. Nonetheless, JPMorgan notes that the project has been underway for several years and is not influenced by recent political changes. About the Author: Tareq Sikder is a Forex technical analyst and financial writer with 12 years of experience, having authored over 1, 500 articles. Stay informed with Finance Magnates Daily Update for top financial news delivered directly to your inbox. [Subscription and privacy disclaimers omitted here. ]