DBS and J.P. Morgan’s Kinexys to Develop Interoperability Framework for Tokenized Deposits
DBS Bank and Kinexys by J.P. Morgan are collaborating to develop a new interoperability framework that enables seamless tokenised value transfers between their on-chain ecosystems — DBS Token Services and Kinexys Digital Payments.
The initiative aims to set a new industry benchmark by allowing cross-bank, cross-chain settlement of tokenised deposits across both public and permissioned blockchains.
Bridging On-Chain Banking Ecosystems
Both banks currently offer 24/7 liquidity and real-time settlement within their own blockchain-powered systems. The new framework will act as an interoperability highway, connecting DBS and J.P. Morgan’s infrastructures to expand cross-bank and cross-border on-chain transactions.
Once operational, the framework will allow institutional clients of both banks — spanning Southeast Asia and the United States — to transfer, exchange, and redeem tokenised deposits across ecosystems in real time.
For instance, a J.P. Morgan client could send payments in J.P. Morgan Deposit Tokens (JPMD) on the Base public blockchain to a DBS client, who could then redeem the equivalent value via DBS Token Services. This model upholds the singleness of money, ensuring that tokenized deposits across banks and blockchains remain fungible and equivalent in value.
A Milestone Toward Cross-Border Interoperability
Rachel Chew, Group Chief Operating Officer and Head of Digital Currencies, Global Transaction Services at DBS, said the partnership is a significant milestone in cross-border money movement.
“Interoperability remains a critical piece in reducing fragmentation and ensuring that the full value of tokenised money can be transferred safely across borders,” she noted. “Our collaboration with Kinexys by J.P. Morgan paves the way for future partnerships as we scale the next generation of financial services.”
Naveen Mallela, Global Co-Head of Kinexys by J.P. Morgan, emphasized that the collaboration reflects the next generation of financial infrastructure. “Working with DBS is a clear example of how financial institutions can collaborate to enhance the usability of tokenised deposits while preserving the singleness of money and ensuring interoperability across markets,” he said.
Advancing the Tokenized Finance Landscape
The move comes as the tokenized finance sector continues to grow rapidly. According to a 2024 Bank for International Settlements survey, commercial banks in nearly one-third of surveyed jurisdictions have launched or piloted tokenized deposit initiatives.
Through this collaboration, DBS and Kinexys by J.P. Morgan aim to advance the usability, scalability, and regulatory compliance of tokenised deposits, transforming how global institutions manage liquidity and payments in a multi-chain, multi-issuer world.
