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JPMorgan and DBS Establish Interoperability Framework to Transform Worldwide Tokenized Financial Systems

JPMorgan and DBS Establish Interoperability Framework to Transform Worldwide Tokenized Financial Systems

Bitget-RWA2025/11/12 08:06
By:Bitget-RWA

- 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.

JPMorgan and DBS Establish Interoperability Framework to Transform Worldwide Tokenized Financial Systems image 0
For example, Deposit Tokens (JPMD) issued on Ethereum’s 2 Base network could be sent to DBS clients, who would then have the option to convert them into DBS tokens or exchange them for fiat, according to the . This interoperability solution is intended to address conventional challenges like security concerns and operational silos, providing businesses with increased flexibility for global transactions, as highlighted in .

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

. She emphasized that interoperability is essential to reducing fragmentation as the digital asset sector grows, according to . Naveen Mallela, Kinexys’s global co-head, remarked that the collaboration demonstrates how financial institutions can work together to maintain the distinctiveness of money while improving market connectivity, as noted in .

This initiative builds upon JPMorgan’s earlier efforts, such as a June 2025 proof-of-concept for JPMD tokens on BaseScan, an

Layer 2 network that integrates with Coinbase, as mentioned in . The pilot seeks to offer institutional clients a stablecoin-like option for cash settlements, expanding on Kinexys’s digital currency projects that began in 2019, as referenced in . Meanwhile, DBS reaffirmed its dedication to regulatory compliance, ensuring the framework adheres to strict standards for multinational companies managing funds across borders, as reported by .

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

. The MIT partnership highlighted the importance of updating regulatory frameworks to support blockchain-based payments, as reported.

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.

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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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