Last month, Chainlink; Kinexys by J.P. Morgan, the financial services firm’s blockchain business unit; and Ondo Finance, a leader in real-world asset (RWA) tokenization, announced the success of a cross-chain delivery versus payment (DvP) test transaction powered end-to-end by the Chainlink Runtime Environment (CRE).
The novel DvP solution highlights the advantages of onchain finance by establishing how assets and payments can be exchanged simultaneously cross-chain. This reduces counterparty and settlement risk by averting system fragmentation and manual workflows that make traditional DvP transactions difficult to execute while costing market participants more than $914 billion over the past decade.
Recently, Chainlink co-founder Sergey Nazarov sat down with Ondo Finance CEO Nathan Allman to discuss how the new U.S. regulatory environment could further accelerate global blockchain scalability and institutional adoption.
“Thankfully, the new SEC, the new administration, is clearly much more ready to embrace tokenization in particular, and has been very engaged with the industry to collect guidance to inform potential sandboxes or other exemptive relief that they might offer to better enable tokenization in the United States,” Allman explained.
A big point of advocacy is defining regulation for tokenizing different types of securities so they can be utilized throughout DeFi.
“That is clarity that the SEC can and, I’m optimistic, will provide – and then, once we get that, we’re off to the races in the U.S.,” he said.
“We don’t need new legislation like we do with the market structure bill to clarify what is and isn’t a security. We are doing our best to follow existing securities laws which legitimately are/try to be technology-agnostic, and we just need some clarification on relatively technical issues on the margins about how to apply those to this world of tokenization that we’re living in.”
“It’s a very positive time in D.C.,” Nazarov agreed. “If there was ever a good window for the U.S. regulatory system and frameworks to adopt the types of standards and the clarity that you just described, I think now is the time.”
Watch the full video.