JPMorgan’s blockchain unit, Kinexys, is collaborating with Singaporean bank DBS to create an interoperability framework for tokenized deposit transfers across various blockchain networks.
This initiative coincides with JPMorgan’s rollout of its deposit token, known as JPM Coin, on Coinbase’s Base blockchain network. Each deposit token acts as a digital representation of a commercial bank deposit, providing a bank-backed alternative to privately issued stablecoins.
Crypto market maker B2C2, along with Mastercard and Coinbase, are among the early participants in trial transactions. The interoperability project with DBS aims to showcase the potential for on-chain token settlements in cross-bank transactions.
For example, JPMorgan envisions that an institutional client could pay a DBS institutional client using J.P. Morgan Deposit Tokens (JPMD) on the Base public blockchain. The recipient would then have the option to exchange or redeem it for equivalent value through DBS Token Services.
Naveen Mallela, global co-head of Kinexys, stated, “Collaborating with DBS on this initiative exemplifies how financial institutions can work together to enhance the benefits of tokenized deposits for institutional clients while ensuring the integrity of money and interoperability across markets.”