DBS and Kinexys by JP Morgan have announced a landmark collaboration to develop an interoperability framework enabling interbank tokenised deposit transfers across multiple blockchains.
The initiative aims to “pave the way for institutions to instantly pay one another, anywhere, at any time,” according to the joint release.
The framework will connect DBS Token Services and Kinexys Digital Payments, allowing seamless exchange and settlement of tokenised deposits across both public and permissioned blockchains. This marks a significant step toward “upholding the singleness of money” in a multi-chain, multi-issuer environment.
Rachel Chew, group chief operating officer and head of digital currencies at DBS, noted how instant 24/7 payments provide businesses with the “optionality, agility and speed to navigate global uncertainties and capture emerging opportunities”.
“As the digital asset ecosystem continues to grow, interoperability remains a critical piece in reducing fragmentation and ensuring that the full value of tokenised money can be transferred safely across borders,” she said. “Our collaboration with Kinexys by JP Morgan to develop an interoperability framework is therefore a significant milestone for cross-border money movement, with the potential to pave the way for future partnerships.”
The framework will allow institutional clients of both banks to exchange or redeem tokenised deposits across platforms. For example, a JP Morgan client could pay a DBS client using JPM Deposit Tokens on the Base public blockchain, with the recipient able to redeem the value via DBS Token Services.
Naveen Mallela, global co-head of Kinexys by JP Morgan, said: “Working with DBS on this initiative is a clear example of how financial institutions can collaborate to further the benefits of tokenised deposits for institutional clients while protecting the singleness of money and ensuring interoperability across markets.”
The initiative builds on both banks’ existing blockchain-powered services, which already offer 24/7 liquidity and real-time settlement within their own ecosystems. By establishing “interoperability highways,” the collaboration aims to scale these capabilities across borders and platforms.
Read Capital Pioneer’s in-depth interview with Mallela here.
