DBS and Kinexys by J.P. Morgan are developing a framework for interbank tokenised deposit transfers across public and private blockchains.
The partnership aims to link DBS Token Services and Kinexys Digital Payments, enabling tokenised value to move seamlessly between both banks’ blockchain ecosystems.
The framework will support real-time settlement and exchangeability of tokenised deposits, paving the way for institutions to pay one another instantly, anywhere and at any time.
Connecting Southeast Asia’s largest bank and the United States’ largest bank, the initiative seeks to set a new standard for on-chain interoperability and improve how businesses manage cross-border finance.
Both banks already offer 24/7 liquidity and instant settlement within their respective blockchain systems.
The new framework extends these capabilities by creating cross-bank “highways” between public and permissioned environments, allowing institutional clients of DBS and J.P. Morgan to transact, redeem or exchange tokenised deposits across platforms and borders in real time.
For instance, a J.P. Morgan client could use J.P. Morgan Deposit Tokens (JPMD) on the Base public blockchain to pay a DBS client, who could then redeem or exchange the funds through DBS Token Services.
The framework upholds the “singleness of money,” ensuring tokenised deposits remain fungible and equivalent across networks.
Rachel Chew, Group Chief Operating Officer and Head of Digital Currencies, Global Transaction Services, DBS Bank, said,
“Instant 24/7 payments provide businesses with the optionality, agility and speed to navigate global uncertainties and capture emerging opportunities. As the digital asset ecosystem continues to grow, interoperability remains a critical piece in reducing fragmentation and ensuring that the full value of tokenised money can be transferred safely across borders.
Our collaboration with Kinexys by J.P. Morgan to develop an interoperability framework is therefore a significant milestone for cross-border money movement, with the potential to pave the way for future partnerships. We look forward to leveraging our combined capabilities to scale the next generation of financial services for our clients.”
Naveen Mallela, Global Co-Head of Kinexys by J.P. Morgan, said,
“We are relentlessly focused on building the next-generation financial infrastructure, backed by deep industry expertise and strong collaborations across the globe.
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.”
Featured image: Edited by Fintech News Singapore, based on images by Who is Danny and capuchino777 via Freepik
