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The tokenization of assets will accelerate capital flows, says Nazarov of Chainlink
Chainlink recently closed deals with Kinexys of JP Morgan and Ondo Finance to develop payment infrastructure for tokenized assets.
The tokenization of assets is intended to accelerate the movement of capital through traditional markets, according to Sergey Nazarov, co-founder of Chainlink. In an interview with Cointelegraph at Consensus 2025 in Toronto, Nazarov stated that this shift will drive the speed of capital in asset classes such as treasury bonds, stocks, private credit, commercial debt, and real estate.
"I think there are two sides to this equation. One is the asset, and the other is the payment. So, you need more high-quality on-chain assets, but you also need smoother payments that existing institutions can easily use," Nazarov said on May 14.
The comments were made on the same day that Chainlink announced a partnership with Kinexys, a blockchain network for institutional-grade tokenized assets from JP Morgan, and the crypto asset firm Ondo Finance. Together, the companies will develop payment systems for institutions trading tokenized real-world assets on-chain.
The partnership tested the exchange of Ondo's U.S. Government Bonds Fund (OUSG), a short-term tokenized U.S. debt fund, with Kinexys, using the Chainlink Execution Environment, a framework to connect legacy financial systems to blockchains in a unified environment.
"What Chainlink is trying to do is start a virtuous cycle that triggers rampant success for the industry as a whole. We want more on-chain assets," Nazarov added. "We want more on-chain payment systems," he continued.
