DeFi and TradFi: A Match Made in Blockchain Heaven? 🤯

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Imagine a world where decentralized finance (DeFi) and traditional finance (TradFi) are like old friends catching up over a cup of coffee, instead of bitter rivals. According to Nelli Zaltsman, the head of blockchain payments innovation at JPMorgan’s Kinexys, this world might be closer than you think. 🌍

At the RWA Summit Cannes 2025, Zaltsman, alongside Chainlink Labs co-founder Sergey Nazarov, revealed that JPMorgan is on a mission to blend institutional-grade payments with the wild world of onchain assets. This could be the tipping point for blockchain’s big break into the mainstream. 🚀

“Our goal has always been to find the best way to work with the public blockchain, regulatory environment permitting,” Zaltsman explained. She described JPMorgan’s blockchain strategy as “asset agnostic,” aiming to give clients real-time access to multiple networks while minimizing the headache. 🤔

The banking giant recently teamed up with Chainlink to pilot synchronized settlement technology, allowing JPMorgan’s blockchain-based deposits to orchestrate transactions across different blockchains. Nazarov called this a “very early sign” of how major banks can connect traditional capital with digital asset markets. 🤝

DeFi and TradFi convergence closer than ever

Zaltsman predicted that the artificial boundaries separating traditional and decentralized finance would dissolve faster than a sugar cube in a cup of tea, driven by improved infrastructure and a growing willingness to play nice. 🍵

She noted that even a decade ago, JPMorgan had to build its own private blockchain because, well, there was nothing else. “Thankfully, that’s not the case today,” Zaltsman said. “It took many years for there to be tools that are kind of underpriced and in support,” she added. 🛠️

“I hope that this convergence happens sooner rather than later… we start looking at tech for what it is and how we can help different users and not… having these artificial boundaries,” Zaltsman said. 🌈

Last month, JPMorgan expanded its blockchain efforts by piloting its new deposit token, JPMD, on Coinbase’s Base network. Zaltsman called the launch “an exciting milestone for the team and I think kind of the Northstar moment for us.” 🌟

Unlike stablecoins, these deposit tokens stay within the bank’s deposit system while offering clients direct access to blockchain-based markets, effectively bridging onchain liquidity with institutional cash management. 🌉

JPMorgan sets banking trend

Meanwhile, Nazarov highlighted the industry-wide impact of JPMorgan’s participation. “What JPMorgan does is that it can drive a lot of the other banking institutions in the world to take notice,” he said. 📈

Nazarov also pointed out that cryptographic proofs and smart contracts can now give smaller counterparties the same reliability as top-tier banks, unlocking new opportunities in capital markets. 🗝️

“They can prove that solvency, you know, by cryptographic means. They can prove through smart contracts or oracle networks, through compliance engines verifying things,” he said, adding that this dynamic could boost competition and product innovation across financial services. 🚀

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2025-07-05 16:37