Defi and tradfi fusions are closer than ever

According to Nelli Zaltsman, head of blockchain payment innovation at JPMorgan Kinexys, the gap between decentralized finance (DEFI) and traditional finance (TradFI) in the next few years is likely to disappear in the next few years.

Zaltsman and Chainlink Labs co-founder Sergey Nazarov said at RWA Summit Cannes in 2025 that JPMORGAN is promoting mergers with institutional-level payment infrastructure and mergers with assets on the link, which shows the skew point of the main frequency chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain chain

“Our goal has always been to find the best way to meet public blockchains, the regulatory environment allows,” Zaltsman said. She described JPMorgan’s blockchain strategy as “asset agnostic”, aiming to give customers real-time access to multiple networks while minimizing friction.

The banking giant recently piloted synchronous settlement technology with Chainlink, allowing JPMorgan Chase blockchain-based deposits to coordinate transactions on different blockchains. Nazarov called the milestone a “very early stage” in how major banks connect traditional capital to the digital asset market.

Related: Tradfi will keep distance until Defi becomes a manageable risk

Defi and tradfi fusions are closer than ever

Zaltsman predicts that the artificial boundaries that separate traditional and decentralized financing will be faster than many would expect, driven by improved infrastructure and growing industries’ willingness to work together.

She noted that even a decade ago, JPMorgan had to build its own private blockchain because there was no suitable solution. “Thankfully, it’s not the case today,” Zaltman said, adding: “It took many years to have a tool that is underpriced and supported.”

“I hope this convergence will happen sooner rather than earlier…we start to look at what technology means and how to help different users, rather than … have these artificial boundaries,” Zaltsmann said.

Last month, JPMorgan expanded its blockchain efforts by driving its new deposit token, JPMD, on Coinbase’s basic network. Zaltsman called the launch “an exciting milestone for the team and I think it’s a Polaris moment for us.”

Unlike Stablecoins, these deposit tokens remain in the bank’s deposit system while providing customers with direct access to the blockchain-based market, effectively bridging the chain liquidity of institutional cash management.

Related: Tradfi may move Onchain due to “terrible banking experience”

JPMorgan sets banking trends

Meanwhile, Nazarov highlighted the industry impact of JPMorgan’s participation. “The role of JPMorgan is that it can drive many other banking institutions around the world to attract attention,” he said.

Nazarov also noted that crypto proofs and smart contracts can now enable smaller counterparties to have the same reliability as top banks, unlocking new opportunities in the capital market.