DBS and Kinexys by J.P. Morgan have announced a collaboration to develop a framework for interbank tokenised deposit transfers across multiple blockchains. This initiative seeks to create interoperability between DBS Token Services and Kinexys Digital Payments, allowing seamless exchange and settlement of tokenised deposits on both public and permissioned blockchains. The framework aims to set a new industry standard by enabling real-time, cross-bank transactions.
The collaboration will allow institutional clients of both banks to conduct transactions across borders with 24/7 availability. For instance, a J.P. Morgan client could use J.P. Morgan Deposit Tokens on the Base public blockchain to pay a DBS client, who could then exchange or redeem the tokens via DBS Token Services. This ensures that tokenised deposits remain fungible and represent the same value across different banks and blockchains.
Rachel Chew, Group Chief Operating Officer and Head of Digital Currencies at DBS Bank, highlighted the importance of interoperability in reducing fragmentation and enhancing the value of tokenised money. “Our collaboration with Kinexys by J.P. Morgan is a significant milestone for cross-border money movement,” she stated. Naveen Mallela, Global Co-Head of Kinexys by J.P. Morgan, emphasised the focus on building next-generation financial infrastructure through strong collaborations.
This initiative comes as tokenised finance experiences accelerated growth. A 2024 survey by the Bank for International Settlements revealed that commercial banks in nearly one-third of surveyed jurisdictions have explored tokenised deposits. Through this partnership, DBS and Kinexys by J.P. Morgan aim to advance the usability and scalability of tokenised deposits, transforming global financial management whilst ensuring regulatory compliance.
