Banking Giant Sees Traditional and Decentralized Finance Merging Ahead of Schedule

JPMorgan's blockchain lead Nelli Zaltsman has revealed that the convergence between decentralized finance (DeFi) and traditional finance (TradFi) may occur years earlier than anticipated. This prediction comes as the banking titan expands its blockchain initiatives, including a recent pilot with Chainlink and Coinbase's Base network.

Breaking Down Institutional Barriers

During the RWA Summit Cannes 2025, Zaltsman emphasized JPMorgan's "asset agnostic" approach to blockchain integration. ——We're focused on eliminating artificial boundaries between financial systems—— she stated, noting the bank's transition from private blockchain solutions to embracing public networks. The executive highlighted【JPMorgan's deposit token JPMD】as a key innovation bridging institutional cash management with onchain liquidity.

Chainlink Partnership Demonstrates Cross-Chain Potential

The bank's synchronized settlement technology pilot with Chainlink represents a breakthrough in connecting traditional banking infrastructure with multiple blockchains. Chainlink co-founder Sergey Nazarov described this as a watershed moment, where cryptographic proofs enable smaller players to compete with established institutions. ——Smart contracts now provide the same reliability as top-tier banks—— Nazarov observed.

Industry-Wide Ripple Effects Expected

Market analysts suggest JPMorgan's moves could trigger a domino effect across global finance. The bank's deposit token system, unlike stablecoins, maintains funds within regulated banking channels while enabling direct blockchain access. This hybrid model addresses regulatory concerns while unlocking【$120 billion】in potential institutional DeFi participation by 2026 according to industry projections.

Infrastructure Maturity Enables Rapid Adoption

Zaltsman contrasted today's robust blockchain tools with the limited options available a decade ago. ——The technology has finally reached institutional-grade standards—— she remarked, predicting this maturity will accelerate TradFi's onchain migration. Notably, JPMorgan's blockchain unit Kinexys processed【$1.8 trillion】in transactions last quarter, signaling growing mainstream acceptance.

New Era of Financial Competition Emerges

The convergence promises to reshape financial services competition, with Nazarov highlighting how cryptographic verification enables smaller players to demonstrate solvency transparently. This development comes as【78%】of institutional investors surveyed by JPMorgan expressed interest in tokenized assets, suggesting 2025-2026 could mark the tipping point for widespread blockchain adoption in traditional finance.