JPMorgan and DBS Bank are collaborating to create an interoperability framework for tokenised bank deposits, aiming to enable round-the-clock transfers across different blockchains between their institutional client bases. The initiative seeks to establish a standard allowing deposit tokens from one bank to be exchanged or redeemed by another – regardless of which blockchain is used.
Under the proposed system, deposit tokens issued by JPMorgan could be used by a DBS client and then seamlessly converted or released through DBS’s token services. This type of cross-bank, cross-blockchain settlement is viewed as an important step in scaling tokenised finance and reducing fragmentation in the digital-asset payments landscape.
Industry analysts note that this move reflects growing momentum among major financial institutions to digitise conventional bank liabilities and payments infrastructure using blockchain, while maintaining regulatory compliance and preserving the fungibility of money in a multi-chain world.
