Chainlink Enhances Efficiency of Cross-Chain Settlements With Tokenized Assets

The Chainlink Runtime Environment (CRE) was used to successfully execute a cross-chain delivery versus payment (DvP) transaction involving tokenized assets between public and permissioned blockchains.

Chainlink, the largest blockchain oracle provider, reported the successful completion of the first cross-chain tokenized asset transaction between two different blockchain networks.

As part of an initiative between JPMorgan’s blockchain network Kinexys Digital Payments, a major American financial conglomerate, and Ondo Finance’s test environment Ondo Chain, an issuer of tokenized securities, a successful DvP exchange was conducted. The transaction involved the OUSG token, issued by Ondo Finance and backed by highly liquid U.S. government bonds.

The successful atomic swap of assets was enabled by the Chainlink Runtime Environment (CRE), a modular computational environment developed by Chainlink to orchestrate complex operations between different blockchain networks and external systems. Within this initiative, CRE ensured synchronous settlement execution between Ondo Chain and Kinexys.

According to the report, executing DvP transactions in the TradFi ecosystem is complicated by isolated infrastructure and manual processes, causing delays, increasing counterparty risk, and leading to settlement failures. Over the past decade, inefficiencies in these processes cost market participants more than $914 billion.

Chainlink’s technology acted as a bridge between public and permissioned blockchains, eliminating the need for transaction parties to trust any single side. The initiative demonstrated that CRE enables the level of automation, security, and interoperability required to advance tokenized asset markets at the intersection of traditional and decentralized finance.

Recently, Chainlink became the principal partner of the Hong Kong Monetary Authority (HKMA) in trials of the digital Hong Kong dollar (e-HKD) in cross-chain transactions. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is used in the project to ensure secure transfer of data and value between public and permissioned blockchain networks.