JPMorgan and DBS Explore Tokenized Deposit Interoperability in Quest for Multi-Bank Framework

Key Takeaways

• JPMorgan and DBS are exploring interoperability for tokenized deposits.

• The 2 banks are some leaders successful the field.

• Building interoperability betwixt antithetic systems is simply a apical precedence for planetary banks.

Starting with JPMorgan’s JPM Coin (JPMC) successful 2019, a drawstring of commercialized banks person launched tokenized deposits successful caller years.

However, these systems presently run successful silos, lone facilitating transfers betwixt accounts astatine the aforesaid bank. 

Hoping to span the disagreement betwixt their respective platforms, connected Tuesday, Nov. 11, JPMorgan and DBS announced plans to physique a caller interbank transportation model for deposit tokens.

And they aren’t the lone ones chasing interoperability.

As tokenized deposits person gained traction, JPMorgan has emerged arsenic a starring planetary subordinate successful this field.

Building connected the occurrence of JPMC, the slope launched a 2nd token, JPMD, earlier this year. 

While some tokens are issued via JPMorgan’s blockchain platform, Kinexys, they disagree successful plan and application.

JPMC is strictly for interior colony betwixt JPMorgan accounts and is chiefly utilized for firm treasury management.

On the different hand, JPMD was designed with a broader scope of usage cases successful mind, perchance including interbank payments.

For its part, DBS has built a blase token strategy that spans USD and SGD deposits.

In an archetypal pilot, Ant International utilized DBS Treasury Tokens to powerfulness interior cross-border transfers.

DBS and JPMorgan marque earthy partners for exploring deposit token interoperability.

DBS Token Services and Kinexys are some blockchain-agnostic, and the 2 banks person wide acquisition transferring worth crossed divers nationalist and backstage networks.

They are besides some progressive successful different initiatives that are processing interbank frameworks for tokenized deposits.

As portion of the Monetary Authority of Singapore’s (MAS) Project Guardian, DBS has participated successful projects exploring interoperability betwixt deposit tokens, stablecoins, and cardinal slope integer currencies (CBDCs).

It has besides piloted blockchain-based euro transactions successful concern with Deutsche Bank.

Meanwhile, JPMorgan is progressive successful immoderate of the astir ambitious projects aiming to trim friction betwixt banks arsenic the modulation toward on-chain fiscal infrastructure.

Alongside different large institutions, it is portion of the Regulated Liability Network, an industry-wide inaugural to physique a shared ledger for tokenized deposits and cardinal slope money.

It has besides joined a conjugation of American banks exploring a associated stablecoin. Finally, astatine the planetary level, JPMorgan is progressive successful Swift’s ongoing blockchain experiments.

The station JPMorgan and DBS Explore Tokenized Deposit Interoperability successful Quest for Multi-Bank Framework appeared archetypal connected ccn.com.