Key Highlights:
- DBS and JPMorgan’s Kinexys develop a cross-chain tokenized deposit interoperability framework.
- The solution connects JPM Deposit Tokens with DBS’s permissioned chain for 24/7 transfers.
- Initiative addresses blockchain interoperability and security risks.
Singapore’s DBS Bank is leading a new initiative with JPMorgan’s Kinexys subsidiary to pioneer a framework for cross-chain tokenized deposit interoperability. This collaboration aims to enable seamless 24/7 transfers between public blockchains and permissioned ledgers, marking a significant advancement in the adoption of tokenized banking assets.
新加坡星展银行（DBS）与摩根大通旗下 Kinexys 正联合开发代币化存款互操作框架，旨在实现公链与许可链间的 24 小时跨链转账与结算。该框架将允许 JPM Deposit Token（部署于以太坊二层 Base） 与 DBS Token Services（许可链）互通，突破传统代币化存款的跨链限制与安全瓶颈。（The…
— 吴说区块链 (@wublockchain12) November 11, 2025
The main focus of this project is to bridge JPMorgan’s Deposit Tokens, which operate on Ethereum Layer 2 (Base), with DBS’s Token Services running on a permissioned blockchain. The goal is to reduce current problems of blockchain networks not working smoothly together and to lower security risks when moving tokenized deposits between them.
Both the institutions have been among the first to use on-chain real-time settlement and provide liquidity through their own tokenized deposit systems. The new interoperability framework will strengthen these systems by allowing nonstop transfers across different blockchains. It aims to create a future where tokenized deposits can move freely and safely between public decentralized blockchains and private, permissioned networks used by banks and regulated organizations.
The DBS-JPMorgan partnership fits into to a larger industry trend where financial institutions are using blockchain to make payments faster, improve liquidity management, and shorten settlement times. DBS Bank, one of the biggest banks in Asia, has led blockchain adoption by using tokenized assets in its treasury and trade finance operations.
Kinexys, a JPMorgan unit focused on blockchain shows how major traditional banks are investing in digital asset technology. JPMorgan’s Deposit Tokens, built on Base (an Ethereum Layer-2 network), show how tokenized deposits can act like digital cash, offering programmable features and real-time settlement.
Expanding Tokenized Deposit Adoption
This move by DBS is a part of a global trend. Big banks around the world are testing similar ideas. For example, BNY Mellon in the U.S. is exploring tokenized deposits to offer more digital asset services. In the U.K. banks, like Barclays, Lloyds, and HSBC are running pilot projects to test digital versions of bank deposits on blockchains.
All these experiments show that banks are becoming more interested in using blockchain to modernize banking. Blockchain can make processes more transparent, faster, and more secure. According to a 2024 report by the Bank of International Settlements (BIS), almost one-third of countries now have banks testing or researching tokenized deposits.
Tokenized deposits are like any other regular bank deposits but they are just turned into digital tokens on a blockchain. This allows them to move more efficiently and be used in automated processes. As these deposits are on the network, the transactions are settled instantly, compliance checks can be built into the transfer itself and liquidity can move more freely across different platforms.
The tokens can also be programmed with rules, for example, limiting how or when the money can be used, which is not possible with traditional deposits. The main challenge holding this back is interoperability, meaning different blockchains still struggle to connect and operate smoothly with one another.
Addressing Interoperability and Security Challenge
For tokenized deposits to be completely useful, they need to move easily from one blockchain to another. Today, that’s difficult, which leads to delays, higher costs, and security risks. DBS and JPMorgan are working on a system that connects private bank blockchains with public chains like Ethereum. This would allow money to be transferred at any time, without waiting for banking hours or batch processing.
If successful, it could change how banks handle cash, letting companies move funds instantly across countries and platforms. This project may also set new standards for the industry and speed up blockchain adoption in everyday banking.
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