JPMorgan and DBS Tackle "Singleness of Money" in Tokenized Finance

JPMorgan Chase & Co. has launched its USD-denominated blockchain deposit token, JPM Coin (JPMD), on the Base network—a public blockchain linked to Coinbase—marking a significant step in institutional tokenized finance. The token, available exclusively to institutional clients, enables real-time, 24/7 settlements for cross-border payments and is designed to mirror U.S. dollar deposits held at the bank. This initiative builds on JPMorgan's earlier proof-of-concept for JPMD, announced in June 2025, and aligns with its broader strategy to expand programmable payments and reduce reliance on traditional banking rails, as noted in the JPMorgan press release.

The launch follows a collaboration between JPMorgan's blockchain division, Kinexys, and Singapore-based DBS Bank to develop an interoperability framework for tokenized deposits. The framework, currently in development, aims to connect JPMorgan's Kinexys Digital Payments with DBS Token Services, allowing seamless cross-chain settlements between public and permissioned blockchains. Under this system, a JPMorgan client could send JPMD tokens to a DBS client, who could then convert them into DBS tokens or redeem them for fiat currency. This interoperability addresses a critical challenge in tokenized finance: ensuring the "singleness of money" across diverse blockchain ecosystems, according to a 2024 BIS survey.

Rachel Chew, Group Chief Operating Officer and Head of Digital Currencies at DBS, emphasized the strategic importance of the partnership. "Businesses can navigate global risks and seize new opportunities with the optionality, agility, and speed that instant 24/7 payments offer," she stated. The framework is designed to minimize fragmentation in the digital asset space while maintaining regulatory compliance, a priority for both institutions as they target enterprise-level adoption, as noted in the DBS press release.

The collaboration reflects a broader industry trend. According to a 2024 Bank for International Settlements (BIS) survey, nearly one-third of jurisdictions are actively exploring tokenized deposit systems. JPMorgan's JPMD and DBS's interoperability framework are part of a growing effort to standardize cross-border payments, with other major banks, including BNY Mellon and U.K. lenders like Barclays, testing similar technologies, as reported in the BIS survey.

JPMorgan's tokenized deposit strategy extends beyond the U.S. dollar. The bank has secured a trademark for "JPME," signaling plans to introduce a euro-denominated deposit token in the future. Additionally, the firm has partnered with the MIT Digital Currency Initiative to develop interoperability standards for bank tokens on open blockchains, including transaction controls and administrative functions tailored for institutional use, as detailed in a MIT report.

The JPMD rollout also highlights JPMorgan's focus on compliance. Unlike retail stablecoins, JPMD operates within a regulated framework, requiring institutional clients to meet stringent KYC and compliance criteria. This approach ensures oversight while enabling faster interbank settlements. Major financial firms, including B2C2, Coinbase, and Mastercard, have already tested transactions using the token, according to JPMorgan.

As tokenized finance matures, frameworks like the one developed by JPMorgan and DBS are expected to play a pivotal role in shaping global payment systems. By prioritizing interoperability and regulatory alignment, these initiatives aim to enhance efficiency, reduce costs, and expand access to real-time settlements for institutional clients. With the BIS noting rapid growth in tokenized deposit adoption, such collaborations could redefine cross-border financial infrastructure in the coming years.