Chainlink and J.P. Morgan Test DvP On-Chain
By Alexandros
Chainlink and J.P. Morgan test DvP on-chain via CRE – a secure cross-chain transaction signals the shift toward T+0 and atomic settlement. It is CRE that reduces the cost of developing T+0-compatible workflows and promises a range of additional benefits, including lower risk, capital efficiency, and increased liquidity.
Current Status and Evolution of Settlement
Let’s begin with definitions to make the importance of Chainlink’s achievement clear. DvP (Delivery versus Payment) is a core principle under which the transfer of securities occurs only if payment is made simultaneously. After the 1987 crash, it became a key standard in global settlement practices, alongside the transition to unified T+n models. First – T+5, then – T+3, later – T+2. In 2024, the United States moved to T+1, reaching 94% trade-date affirmation already on the day after implementation. Canada, Mexico, and India also adopted T+1, and the EU and the United Kingdom are preparing to transition in 2027.
However, all of this is TradFi infrastructure, and now we are witnessing that Chainlink completed a transaction conducted with the participation of Kinexys Digital Payments and Ondo Finance, which demonstrated the possibility of secure, atomic settlement across public blockchains without intermediaries. Chainlink Runtime Environment (CRE) orchestrated the entire settlement cycle, including synchronization of delivery and payment in real time, showing that their mechanism eliminates the risk of failed settlement and brings the industry closer to the T+0 model.
What T+1 to T+0 Offers
Reducing the settlement window provides several critical effects:
- Counterparty risk reduction. The shorter the cycle, the lower the probability of default by one of the parties or of prices diverging from the trade terms.
- Capital optimization. Market participants require less margin and reserve capital – in the United States alone, the adoption of T+1 made it possible to reduce clearing fund requirements by $3 billion per day.
- Increased liquidity. Accelerated access to cash and assets enables faster reinvestment, improves price discovery, and lowers costs.
- Operational resilience. Shorter cycles require automation of affirmation and reconciliation, reducing the share of manual processing and the likelihood of failures.
- The India example. After the transition to T+1 in 2023, spreads narrowed and liquidity improved, especially in the segment of less liquid stocks.
Chainlink Runtime Environment and the Move Toward T+0 Architecture
Thus, we are seeing an especially interesting situation where it is not a TradFi provider, but Chainlink and its CRE that are bringing the industry closer to T+0 and offering market participants a ready-made environment for orchestrating atomic settlement, eliminating the need to manually assemble complex processes.
- Simultaneous settlement across different networks.
- Automated and verifiable workflows.
- Near real-time transaction finality.
- Onchain transparency and traceability.
- Reduced intermediary costs across both public and permissioned environments.
Conclusion
This is far from the first achievement by Chainlink, not only in bridging the gap of seamlessness and security betweenWeb2 and Web3, but also in improving the entire infrastructure of digital finance. And considering the pace and relevance of their developments, we are unlikely to be seeing the last of such achievements. Stay tuned for the latest updates in crypto, blockchain, and DeFi.
