JPMorgan (JPM) and Singapore’s DBS Bank (D05) are developing a framework to let institutional clients move tokenised deposits across different blockchain networks.
The system would link DBS Token Services with JPMorgan’s Kinexys Digital Payments project, enabling cross-bank, cross-chain settlements, the banks said in an emailed announcement on Tuesday.
Both banks already allow instant payments within their own blockchain systems. This new effort would connect those closed networks, letting clients send value between institutions without relying on traditional payment rails.
“Working with DBS on this initiative is a clear example of how financial institutions can collaborate to further the benefits of tokenised deposits for institutional clients while protecting the singleness of money and ensuring interoperability across markets,” said Naveen Mallela, Global Co-Head of Kinexys by JPMorgan.
JPMorgan, which made its first moves in blockchain finance several years ago, recently took a step further into decentralized finance (DeFi), issuing a USD deposit token on Coinbase’s Base blockchain, a public layer-2 ledger.
The new tie-up would allow a JPMorgan client to use its deposit tokens on the Base blockchain to pay a DBS client, for example, who could then redeem or hold those tokens on DBS’s platform.
The move reflects a growing effort among major banks to make digital deposits work seamlessly across systems and jurisdictions. Roughly a third of banks worldwide have introduced or are exploring tokenised deposit projects, according to the Bank for International Settlements (BIS).
