JPMorgan: 'The Boundary Between DeFi and Traditional Finance Will Disappear Sooner Than Expected'

Global financial giant JPMorgan predicted that the boundary between traditional finance (TradFi) and decentralized finance (DeFi) may break down more quickly than anticipated.

According to Cointelegraph, a cryptocurrency-focused media outlet, Nelli Zaltsman, Head of Blockchain Payments Innovation at JPMorgan, stated at the 'RWA Summit 2025' held in Cannes, France, that “The gap between decentralized finance (DeFi) and traditional finance (TradFi) could disappear faster than expected in the next few years.”

Zaltsman emphasized, “Ten years ago, we had to build private blockchains ourselves, but now there is sufficient infrastructure in place,” adding, “A new trend has started that focuses on the intrinsic value of technology beyond artificial distinctions.”

Recently, JPMorgan conducted a pilot introduction of its deposit token (JPMD) on 'Base,' Coinbase's Layer 2 network. Unlike stablecoins, this token operates within the bank's deposit system, offering institutional clients on-chain market accessibility and real-time payment capabilities.

She explained, “We’ve always sought optimal ways to collaborate with public blockchains,” adding, “Within the confines of regulatory environments, we are pushing strategies to combine traditional financial infrastructure with on-chain assets.”

Meanwhile, JPMorgan recently jointly tested an on-chain deposit-based synchronized payment technology with Chainlink. This system connects transactions across multiple blockchains to enable simultaneous settlement and features 'cross-chain atomic DvP (Delivery versus Payment)' implemented through the Chainlink runtime environment.