In a landmark move, DBS Bank and Kinexys by J.P. Morgan announced plans to co-develop a blockchain-based interoperability framework enabling seamless tokenized value transfers between their respective on-chain ecosystems, DBS Token Services and Kinexys Digital Payments.
The initiative aims to establish a new industry standard for cross-bank digital payments by allowing tokenized deposits to move fluidly between both public and permissioned blockchains.
This would enable institutional clients of both banks to exchange, redeem, or settle tokenized deposits in real time, a significant advancement toward 24/7 global liquidity and on-chain interoperability.
Under the proposed framework, a client of J.P. Morgan could, for example, send a payment using JPM Deposit Tokens (JPMD) on the Base public blockchain to a DBS client, who could then redeem or exchange it for equivalent value via DBS Token Services.
This model upholds the “singleness of money,” ensuring that tokenized deposits across institutions and blockchains remain fungible and represent the same monetary value.
Industry Perspectives
Rachel Chew, Group Chief Operating Officer and Head of Digital Currencies at DBS, said the collaboration marks a “significant milestone for cross-border money movement,” emphasizing that interoperability is key to reducing market fragmentation and scaling the benefits of tokenized assets.
Naveen Mallela, Global Co-Head of Kinexys by J.P. Morgan, added that the project exemplifies how financial institutions can collaborate to enhance tokenized deposits “while protecting the singleness of money and ensuring interoperability across markets.”
Growing Momentum in Tokenized Finance
The collaboration comes amid growing global momentum in tokenized finance. A 2024 survey by the Bank for International Settlements (BIS) found that commercial banks in nearly one-third of jurisdictions are experimenting with tokenized deposits.
Redefining Cross-Border Settlement
By integrating their blockchain infrastructures, DBS and J.P. Morgan aim to redefine cross-border settlement standards, fostering faster, cheaper, and more resilient institutional payment networks worldwide.