Breaking Barriers: The Merging Worlds of DeFi and TradFi
In a world where decentralized finance (DeFi) and traditional finance (TradFi) often appear to be polar opposites, change could be on the horizon. Nelli Zaltsman, head of blockchain payments innovation at JPMorgan’s Kinexys, suggests that the gap between these two financial realms could vanish in the approaching years.
The Push for Integration
During a discussion with Chainlink Labs’ co-founder, Sergey Nazarov, on the RWA Summit Cannes 2025, Zaltsman revealed that JPMorgan is making strides to integrate institutional-grade payment systems with the brand new wave of onchain assets. This move might just be a significant step towards mainstream blockchain adoption.
“We’ve always aimed to collaborate with public blockchains, as long as regulations allow,” Zaltsman explained. She highlighted JPMorgan’s “asset agnostic” approach, which is all about providing clients seamless access to multiple networks while keeping things smooth and efficient.
Pioneering Blockchain Solutions
JPMorgan recently piloted a synchronized settlement technology in collaboration with Chainlink. This tech allows JPMorgan’s blockchain-based deposits to oversee transactions on various blockchains. Nazarov described this as an early indicator of how traditional banks could link up with digital asset markets.
Crosschain atomic DvP settlement between Kinexys and Ondo Chain, powered by the Chainlink Runtime Environment. Source: Chainlink
DeFi and TradFi: A Convergence in Sight
Zaltsman is optimistic that the factitious barriers between traditional and decentralized finance will crumble prior to anticipated, due to enhanced infrastructure and a growing willingness throughout the industry to collaborate.
Looking back, she recalled how, a decade ago, JPMorgan needed to create its own private blockchain as a result of a scarcity of viable alternatives. “Fortunately, that’s no longer the case,” she noted. “It took many years for supportive tools to emerge, but now they’re here.”
Hoping for swift convergence, Zaltsman emphasized, “We should focus on technology’s potential to help users, instead of getting bogged down by these artificial divides.”
New Developments in Blockchain
Just last month, JPMorgan took one other leap of their blockchain journey by piloting a brand new deposit token, JPMD, on Coinbase’s Base network. Zaltsman described this launch as a “thrilling milestone” and a guiding star for his or her future direction.
Unlike stablecoins, these deposit tokens are confined throughout the bank’s deposit system while providing clients direct access to blockchain markets, effectively connecting onchain liquidity with institutional money management.
JPMorgan: Setting the Trend in Banking
Nazarov highlighted the ripple effect of JPMorgan’s involvement within the blockchain space. “When JPMorgan takes a step, it prompts other banks worldwide to pay attention,” he remarked.
He also noted how cryptographic proofs and smart contracts can now offer smaller players the identical level of trust as top-tier banks, unlocking fresh opportunities in capital markets.
“They can demonstrate solvency through cryptographic means, using smart contracts, oracle networks, and compliance engines,” Nazarov explained, suggesting that such transparency could drive competition and innovation in financial services.
Image Credit: cointelegraph.com
