JPMorgan and DBS Forge Standard for Interoperable Blockchain Finance

JPMorgan Chase & Co. and DBS Bank, Singapore's largest lender, have partnered to develop an interoperability framework enabling real-time tokenized deposit settlements across both public and permissioned blockchains, marking a significant step toward standardizing cross-chain financial transactions. The collaboration, announced on November 11, 2025, links JPMorgan's Kinexys Digital Payments platform with DBS Token Services, allowing institutional clients to transfer tokenized deposits seamlessly between the two banks' blockchain ecosystems. This initiative aims to address longstanding interoperability challenges that have hindered cross-network transactions, particularly in cross-border payments, according to LookonChain.

The framework, currently under development, will facilitate 24/7 liquidity services and real-time settlements, enabling clients to exchange or redeem tokenized deposits instantaneously. For example, a JPMorgan client using its JP Morgan Deposit Token (JPMD) on the Ethereum Layer 2 network Base could pay a DBS client, who could then convert the tokens into DBS tokens or redeem them for fiat currency. This capability expands beyond single-bank tokenized deposit systems, which are limited to transactions within the same institution, as noted in a CryptoTimes report.

Both banks already offer internal blockchain-based payment solutions, but the new framework will connect these closed networks, allowing cross-institutional transfers without relying on traditional banking infrastructure. Naveen Mallela, Global Co-Head of Kinexys at JPMorgan, emphasized that the project exemplifies how financial institutions can collaborate to "protect the singleness of money" while ensuring interoperability across markets, according to Coinpedia. Rachel Chew, Group COO at DBS, highlighted that 24/7 instant payments provide businesses with the agility to "navigate global uncertainties and capture emerging opportunities," a critical advantage in an era of volatile markets, as reported by Blockonomi.

The initiative aligns with a broader industry trend: over one-third of global commercial banks are now exploring or implementing tokenized deposit systems, according to a 2024 Bank for International Settlements (BIS) survey. Major institutions, including UBS, BNY Mellon, and HSBC, are testing similar solutions to reduce settlement times and costs. JPMorgan and DBS aim to set a new industry standard by creating an adaptable framework that minimizes ecosystem fragmentation and ensures regulatory compliance, as noted in a Cointelegraph report.

Testing with select institutional clients is set to begin before a wider rollout, though a specific launch date has not been disclosed. The project builds on JPMorgan's prior work, including its issuance of a USD deposit token on Coinbase's Base blockchain and its collaboration with MIT's Digital Currency Initiative to develop interoperability standards. For DBS, the partnership complements its existing tokenization efforts, such as Project Guardian, a Singaporean initiative exploring tokenized assets under regulatory oversight, as detailed in a FinanceFeeds article.

The collaboration also reflects growing interest in tokenized real-world assets (RWAs), which aim to digitize tangible and financial assets to enhance accessibility and efficiency. By bridging public and permissioned blockchains, JPMorgan and DBS are positioning themselves at the forefront of a financial system increasingly reliant on programmable money and decentralized infrastructure.