JPMorgan, DBS eye deposit tokens as cross-bank alternative to stablecoins


As of 2024, at least one-third of commercial banks were exploring or piloting tokenized deposits, according to a survey by the Bank for International Settlements.

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Leading financial institutions are continuing to explore blockchain technology to facilitate cheaper and faster institutional payments, signaling a growing interest in tokenization solutions.

US investment bank JPMorgan and Singapore multinational banking group DBS

Creating an interoperable framework remains critical for reducing fragmentation in tokenized, cross-border money transfers, according to Rachel Chew, group chief operating officer and head of digital currencies, global transaction services at DBS Bank.

“Our collaboration with Kinexys by J.P. Morgan to develop an interoperability framework is therefore a significant milestone for cross-border money movement,” said Chew, adding that instant, 24/7 payments will offer businesses more “optionality, agility and speed to navigate global uncertainties and capture emerging opportunities.”

Related: Standard Chartered sees $2T in tokenized RWAs by 2028, matching stablecoins

The new framework was announced two weeks after JPMorgan initiated the first transaction on its upcoming tokenization platform, Kinexys Fund Flow, Cointelegraph reported on Oct. 30.

The investment bank is preparing to launch its tokenization platform in 2026, with plans to tokenize additional assets, including private credit and real estate.

JPMorgan and DBS were also some of the main backers of Patrior, a blockchain-based settlement network and payment platform, which raised $60 million in July 2024.

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