TechFlow news, November 11 — According to The Block, Singapore's DBS Bank is collaborating with Kinexys, a subsidiary of JPMorgan Chase, to develop an interoperability framework designed to enable transfers of tokenized deposits between the two institutions' blockchain ecosystems. This framework will allow customers to conduct 24/7 real-time transactions across public and permissioned blockchain networks, overcoming traditional barriers caused by limited interoperability and security risks.
Customers using JPM deposit tokens built on Base, an Ethereum Layer 2 network, will be able to interact with DBS's tokenization services operating on a permissioned blockchain. This partnership is part of a broader trend among global financial institutions toward tokenization, with BNY Mellon and major UK banks including Barclays, Lloyds, and HSBC recently announcing similar initiatives.
A 2024 report from the BIS indicates that nearly one-third of commercial banks in surveyed jurisdictions have launched, piloted, or are exploring tokenized deposits.
