JPMorgan and DBS Bank Develop Tokenized Deposit Framework for Cross-Border Settlements
On November 11, 2025, JPMorgan’s Kinexys platform and Singapore’s DBS Bank announced a collaboration to develop an interoperability framework for tokenized deposits. This partnership connects two major financial institutions through blockchain technology. The system links DBS Token Services with JPMorgan’s Kinexys Digital Payments project to enable cross-bank, cross-chain settlements.
The tokenization framework allows institutional clients of both banks to exchange or redeem tokenized deposits and conduct real-time cross-border payments. This development marks a shift toward programmable and interoperable forms of institutional money. Both banks already allow instant payments within their own blockchain systems. The new framework connects these previously isolated networks.
How the Tokenized Deposits Blockchain Framework Operates
The collaboration enables clients to send value between institutions without relying on traditional payment rails. A JPMorgan institutional client could potentially pay a DBS client using JPMorgan Deposit Tokens on the public Base blockchain. The receiving DBS client can then redeem those tokens for fiat currency or convert them into DBS tokens.
The framework provides instant payments around the clock across both public and permissioned blockchain networks. This removes the typical delays associated with conventional banking systems. The model uses Kinexys and DBS Token Services to create a unified cross-chain payment corridor. Clients can transact without switching between different financial networks.
Tokenized Deposits Offer Banking Advantages Over Traditional Systems
Tokenized deposits represent regulated, real-world money on blockchain systems, enhancing trust and compliance. Unlike traditional cryptocurrencies, these digital representations are backed by banks and operate under regulatory supervision. The framework could potentially enable round-the-clock transfers of tokenized deposits across public and permissioned blockchain networks.
JPMorgan recently issued a USD deposit token on Coinbase’s Base blockchain, a public layer-2 ledger. This move demonstrated the bank’s commitment to decentralized finance infrastructure. According to a 2024 report by the Bank for International Settlements, commercial banks in nearly one-third of surveyed jurisdictions have launched, piloted, or conducted research on tokenized deposits. The technology gains traction across the global banking sector.
Cross-Border Blockchain Settlements Transform Institutional Finance
Naveen Mallela, Global Co-Head of Kinexys by JPMorgan, stated the collaboration demonstrates how financial institutions can advance the benefits of tokenized deposits for institutional clients. The partnership maintains the singleness of money while ensuring interoperability across markets. Rachel Chew, group chief operating officer at DBS Bank, emphasized that instant, 24/7 payments offer businesses more optionality, agility, and speed.
The initiative goes beyond individual bank pilots by demonstrating multi-bank, cross-border execution. Traditional payment systems struggle with interoperability between different financial networks. This framework addresses fragmentation in the tokenized money ecosystem. The goal is to develop a standard that others could use.
Tokenized Deposits Blockchain Framework Sets Industry Standards
The partnership between Southeast Asia’s largest bank and America’s largest bank creates a significant precedent. Several major UK lenders, including Barclays, Lloyds, and HSBC, announced they are launching a live pilot of tokenized sterling deposits. Financial institutions recognize the efficiency gains that blockchain technology provides.
The framework maintains security and regulatory compliance while improving transaction speed. Banks can eliminate settlement delays and reduce transaction costs through this technology. The collaboration demonstrates that institutional-grade blockchain infrastructure no longer needs fragmentation.
Conclusion
The JPMorgan and DBS Bank partnership represents a significant milestone in blockchain-based institutional finance. The framework enables seamless cross-border transactions while maintaining traditional banking safeguards. As more institutions adopt tokenized deposits, interoperability standards become essential infrastructure components.
