DBS collaborates with JPMorgan to develop a tokenized deposit interoperability framework

According to The Block, Singapore's DBS Bank and Kinexys, a subsidiary of JPMorgan, are developing an interoperability framework aimed at enabling tokenized deposit transfers between the blockchain ecosystems of the two institutions. This framework will allow customers to conduct real-time transactions around the clock between public and permissioned blockchain networks, breaking down barriers traditionally caused by limited interoperability and security risks.

Reportedly, customers using the JPM deposit token built on the Ethereum Layer 2 Base will be able to interact with DBS's token services running on a permissioned blockchain. This collaboration is part of a global trend among financial institutions towards tokenization, with recent announcements from BNY Mellon and major UK banks including Barclays, Lloyds, and HSBC launching similar projects.

According to the BIS 2024 report, nearly one-third of surveyed jurisdictions' commercial banks have launched, piloted, or researched tokenized deposits.