JPMorgan and Singapore’s DBS Bank have jointly introduced a cross-chain settlement model that allows institutional clients to transfer tokenized deposits across multiple blockchain networks, including both permissioned systems and public chains. The initiative represents a significant advancement in institutional finance, as it creates an interoperable framework that merges traditionally siloed digital payment infrastructures into a unified ecosystem.
The new system establishes a synchronized settlement framework linking JPMorgan’s Kinexys Digital Payments platform with DBS Token Services. This setup enables real-time settlement of tokenized deposits between the two banks without depending on traditional clearing channels such as SWIFT or central bank payment rails. By doing so, the banks have moved beyond simply digitizing payments, instead building a bridge that interconnects their blockchain environments to support programmable, compliant, and interoperable forms of money.
Interoperability between private and public blockchains
Both JPMorgan and DBS already allow their institutional clients to use tokenized deposits within their own closed blockchain networks. However, this new framework connects those internal systems, transforming them into an open corridor for institutional value transfer. The most notable aspect of this initiative is its ability to facilitate regulated interoperability between permissioned bank blockchains and public networks—a development long viewed as a critical step toward scalable digital asset integration.
Under the model, a JPMorgan client holding a U.S. dollar deposit token issued on Coinbase’s Base blockchain, a Layer-2 network built on Ethereum, can use that token to make a payment to a DBS client. The recipient can then either redeem the token for cash or retain it within DBS’s digital asset ecosystem. This process demonstrates seamless interoperability across different blockchain types while maintaining compliance with financial regulations.
By enabling this type of cross-institutional transaction, the system eliminates fragmentation and showcases that institutional-grade blockchain infrastructure can operate cohesively across platforms.
From proof-of-concept to large-scale implementation
The initiative builds upon JPMorgan’s earlier forays into decentralized finance. The bank recently issued a deposit token on the Base network—one of the first instances of a major financial institution using a public blockchain for institutional-grade digital cash equivalents. The new cross-chain model takes this experimentation further by transforming it into a functional, multi-bank settlement framework capable of supporting real-world payments and treasury operations.
The design upholds the “singleness of money” principle, ensuring that a deposit token retains its value and authenticity across different ledgers. Achieving this consistency requires sophisticated smart contract interoperability, coupled with financial and regulatory safeguards equivalent to those of traditional banking systems.
This development also reflects a broader shift within the financial sector. Banks are moving beyond internal proofs-of-concept toward building external-facing frameworks that can handle real-world payments, settlements, and cross-border transactions on a large scale. According to the Bank for International Settlements (BIS), nearly one-third of global banks are already experimenting with or implementing tokenized deposit systems—evidence of growing institutional confidence in blockchain-based money.
Replacing legacy rails with digital corridors
Until recently, blockchain adoption in institutional finance was primarily focused on internal efficiency improvements. However, the integration of JPMorgan’s Kinexys platform with DBS Token Services signals a move toward production-grade infrastructure that could eventually rival or complement traditional clearing systems.
The cross-chain corridor enables programmable money that combines the reliability of fiat currencies with the transparency, speed, and flexibility of blockchain technology. Transactions can now be settled instantly across jurisdictions and time zones, without relying on intermediaries or batch-based clearinghouses.
As digital assets and real-time financial expectations continue to reshape global markets, the collaboration between JPMorgan and DBS represents a pivotal evolution in how institutional money flows. Tokenized deposits are no longer experimental—they are becoming the foundational infrastructure supporting the next generation of cross-border financial settlements.
