JPMorgan Executive: The Boundaries Between DeFi and TradFi May Disappear as Blockchain Payment Innovations Accelerate

[Coin World] The boundaries between Decentralized Finance (DeFi) and Traditional Finance (TradFi) may disappear in the coming years, said Nelli Zaltsman, Head of Blockchain Payments Innovation at JPMorgan Kinexys. During a speech at the RWA Summit Cannes 2025, Zaltsman stated that JPMorgan is working to merge institutional payment infrastructure with emerging on-chain assets, marking a turning point in mainstream blockchain adoption. "Our goal has always been to find the best way to work with public blockchains, where regulatory environments allow," Zaltsman said. She described JPMorgan's blockchain strategy as "asset-agnostic," aiming to provide clients with real-time access to multiple networks while minimizing friction. The banking giant recently piloted synchronized settlement technology in partnership with Chainlink, allowing JPMorgan to coordinate transactions based on blockchain deposits across different blockchains. Nazarov called this milestone a "very early sign" of how large banks are connecting traditional capital with the digital asset market.

Zaltsman predicts that the artificial boundaries separating TradFi and Decentralized Finance will disappear faster than many expect due to improved infrastructure and increased willingness for industry collaboration. She pointed out that even ten years ago, JPMorgan had to build its own private Blockchain due to a lack of suitable solutions. "Fortunately, that's not the case today," Zaltsman said. "After years of development, affordable and supportive tools have emerged," she added. "I hope this integration happens as soon as possible... We are starting to look at it from the perspective of the technology itself and how we can help different users, rather than... setting these artificial boundaries," Zaltsman said. Last month, JPMorgan expanded its Blockchain business by piloting its new deposit token, JPMD, on the Base network of a trading platform. Zaltsman called the release "an exciting milestone for the team, and I think this is a guiding moment for us." Unlike stablecoins, these deposit tokens remain within the bank's deposit system while providing customers direct access to Blockchain-based markets, effectively connecting on-chain liquidity with institutional cash management.

At the same time, Nazarov emphasized the industry-wide impact of JPMorgan's participation. "What JPMorgan does is that it can draw the attention of many other banking institutions around the world to this," he said. Nazarov also pointed out that cryptographic proofs and smart contracts can now provide smaller counterparties with the same reliability as top banks, thereby unlocking new opportunities in capital markets. "They can prove solvency through cryptographic means. They can verify things through smart contracts or oracle networks, through compliance engines," he said, adding that this dynamic can foster competition and product innovation in the financial services sector.