JPMorgan and DBS Establish Interoperability Framework to Transform Worldwide Tokenized Financial Systems
- JPMorgan and DBS Bank partner to create a blockchain-based interoperability framework for tokenized deposits, aiming to revolutionize cross-border institutional payments and set digital finance standards. - The framework enables real-time 24/7 settlements across public and permissioned blockchains, allowing seamless exchange of tokenized deposits between institutions via JPMorgan's Kinexys and DBS's tokenization expertise. - By addressing ecosystem fragmentation and enhancing operational flexibility, the
JPMorgan and Singapore’s DBS Bank have unveiled a collaboration to create a blockchain-powered interoperability framework for tokenized deposits, aiming to transform institutional cross-border payments and establish a new benchmark for digital finance. Announced on November 11, the partnership utilizes JPMorgan’s Kinexys platform alongside DBS’s expertise in tokenization to facilitate instant, round-the-clock settlements across both public and private blockchains, addressing fragmentation within the tokenized asset landscape, as outlined in
This framework will enable institutional customers to transfer and redeem tokenized deposits effortlessly between the two banks’ blockchain environments.
Rachel Chew, DBS’s Group Chief Operating Officer and Head of Digital Currencies, stressed the strategic value of the project: “With instant, 24/7 payments, businesses gain the flexibility, speed, and options needed to manage global risks and capitalize on new opportunities,” as reported by
This initiative builds upon JPMorgan’s earlier efforts, such as a June 2025 proof-of-concept for JPMD tokens on BaseScan, an
This partnership reflects the rising institutional interest in tokenized finance. A 2024 survey by the Bank for International Settlements revealed that almost a third of commercial banks are investigating tokenized deposits, signaling rapid changes in the industry. By building a cross-issuer, cross-network system, JPMorgan and DBS seek to boost scalability and accessibility, potentially accelerating the global adoption of tokenized assets, as discussed in
This project also follows JPMorgan’s collaboration with MIT’s Digital Currency Initiative, which produced a payment token prototype on an EVM-compatible blockchain to test administrative controls and transaction functions, as described in
As tokenized finance continues to evolve, frameworks like this could transform cross-border payments, delivering quicker and more cost-effective alternatives to conventional systems. With instant settlements and greater institutional participation, the JPMorgan and DBS alliance marks a significant move toward a more unified digital financial ecosystem.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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