JPMorgan Tokenizes U.S. Treasuries on $ONDO via Ondo Finance

By: bitcoin ethereum news|2025/05/16 02:15:05
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JPMorgan used Ondo Finance to execute its first public blockchain trade involving U.S. Treasury bonds on the $ONDO ledger. Over $1 billion in Treasury tokens is now live across Ethereum, Polygon, Avalanche, Stellar, and $ONDO networks. The SEC is reviewing frameworks and exemptions to support legally compliant issuance of tokenized government securities. JPMorgan Chase has executed its first public transaction involving tokenized U.S. Treasury bonds on the $ONDO public ledger. The trade was facilitated by Ondo Finance and involved short-term Treasuries backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). These assets allow 24/7 blockchain-based settlement while adhering to institutional custody and regulatory standards. The transaction was processed via JPMorgan’s Onyx Digital Assets platform, which the bank launched in 2020. Onyx has previously been used for intraday repo settlements and transactions involving JPM Coin. Stablecoin Holders Target Treasury Tokens Ondo Finance CEO Nathan Allman said the product targets entities that hold stablecoins—such as DAOs, Web3 firms, and crypto-native funds—that need reliable, low-risk instruments on-chain. By tokenizing Treasuries, these groups can deploy capital with predictable returns without converting into fiat or interacting with traditional banking infrastructure. This setup supports automated liquidity management, allowing protocols to rebalance reserves or execute yield strategies directly through smart contracts. Public Chains Host $1B in Treasury Tokens Over $1 billion worth of U.S. Treasuries has now been tokenized across public blockchains like Ethereum, Polygon, and Avalanche. These are part of a broader $22.1 billion market for real-world assets (RWAs) being brought on-chain. Meanwhile, Franklin Templeton has issued tokenized Treasury funds on Stellar and Polygon. WisdomTree uses its digital platform, WisdomTree Prime, to offer tokenized exposures to U.S. government securities. JPMorgan selected the $ONDO ledger for its settlement speed, fee predictability, and regulatory focus. Unlike general-purpose chains, $ONDO supports financial transactions with low latency and customizable compliance logic, making it suitable for tokenized fixed-income products. It also allows integration with smart contracts for automated processing. SEC Talks Highlight Regulatory Path In April 2025, Ondo Finance and its legal counsel met with the SEC’s Crypto Task Force to present tokenization models that meet existing legal frameworks. Discussions included registration processes, broker-dealer compliance, and anti-money laundering standards. At the same time, the SEC proposed exemptions to encourage the use of distributed ledger technology in securities markets. These proposals aim to create regulatory clarity for blockchain-based asset issuance and trading. This transaction reflects a broader trend: large financial institutions are no longer limiting blockchain use to internal pilots. Instead, they are executing public trades involving regulated instruments and audited funds. By working with platforms like Ondo, banks such as JPMorgan are aligning blockchain infrastructure with compliance requirements and operational needs. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company. Source: https://coinedition.com/jpmorgan-completes-first-public-trade-of-tokenized-u-s-treasuries-on-ondo-ledger/

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