DeFi and TradFi Convergence Closer Than Ever

The divide between decentralized finance (DeFi) and traditional finance (TradFi) could disappear within the next few years, according to Nelli Zaltsman, head of blockchain payments innovation at JPMorgan’s Kinexys.

Speaking alongside Chainlink Labs co-founder Sergey Nazarov at the RWA Summit Cannes 2025, Zaltsman said JPMorgan is pushing to merge institutional-grade payments infrastructure with emerging onchain assets, signaling what could be a tipping point for mainstream blockchain adoption.

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

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

Related: TradFi will keep its distance until DeFi becomes a manageable risk

DeFi and TradFi convergence closer than ever

Zaltsman predicted that the artificial boundaries separating traditional and decentralized finance would dissolve faster than many expected, driven by improved infrastructure and growing industry willingness to work together.

She noted that even a decade ago, JPMorgan had to build its own private blockchain due to the absence of suitable solutions. “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,” Zaltsmann 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.

Related: TradFi could move onchain due to ‘horrible banking experiences’

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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