JPMorgan and DBS Introduce Blockchain Network to Integrate Tokenized Currencies

JPMorgan Chase and Singapore’s DBS Bank have unveiled a pioneering partnership to create a blockchain-powered interoperability framework for tokenized deposits, aiming to facilitate instant, cross-border payments for institutional clients. This collaboration, which connects JPMorgan’s Kinexys Digital Payments with DBS Token Services, seeks to set a new benchmark for digital asset movement across both public and private blockchains. The alliance highlights the increasing momentum among international banks to harness blockchain technology for swifter and more streamlined financial systems.

This framework enables clients to instantly swap or redeem tokenized deposits at any time, regardless of which blockchain is used. For instance, a

institutional customer could utilize JPMorgan Deposit Tokens (JPMD) on the Base blockchain, which is built on Ethereum, to make a payment to a DBS client. The recipient could then exchange those tokens for DBS-issued tokens or convert them into fiat currency, according to a report by . This model maintains the “singleness of money,” ensuring that tokens keep their value and can be freely exchanged across different platforms.

Rachel Chew, Group Chief Operating Officer and Head of Digital Currencies at DBS, highlighted the importance of interoperability: “Around-the-clock instant payments give businesses flexibility, speed, and the ability to respond to global changes and seize new opportunities. Ensuring interoperability is essential to minimize fragmentation and guarantee that the full value of tokenized money can move securely across borders.” Naveen Mallela, Global Co-Head of Kinexys by JPMorgan, remarked that this partnership demonstrates how financial institutions can “expand the advantages of tokenized deposits while safeguarding the integrity of money and supporting market interoperability,” as reported by

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This initiative is part of a larger industry movement toward tokenized financial services. According to a 2024 survey by the Bank for International Settlements (BIS), nearly one in three commercial banks worldwide have launched, tested, or investigated tokenized deposit offerings. Other leading banks, such as BNY Mellon, Barclays, and HSBC, are also progressing with blockchain-based payment pilots. JPMorgan’s recent deployment of JPMD tokens on BaseScan—a

2 network that works with Coinbase—further demonstrates the bank’s dedication to digital transformation, as noted by .

The DBS-Kinexys framework tackles a central obstacle in digital asset adoption: enabling interoperability between different blockchain networks. By establishing a “highway” for cross-chain transactions, this partnership reduces dependence on conventional banking systems and mitigates settlement risks. The project builds on JPMorgan’s earlier collaboration with the MIT Digital Currency Initiative, which set standards for interoperability of bank tokens on open blockchains, as reported by

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Experts believe this initiative could pave the way for future international partnerships. “When two major banks from different parts of the world join forces to address real-world challenges like fragmented payment networks, it’s more than just discussion. It signals that tokenized finance is reaching a new level of maturity,” a commentator told SQ Magazine. The framework’s progress could drive broader adoption, especially as regulatory frameworks become clearer and interest in programmable money increases.

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