JPMorgan & DBS Launch 24/7 Cross-Bank Deposit Tokens
JPMorgan and DBS have partnered to launch an interoperable deposit token framework, enabling institutional clients to exchange or redeem tokenized deposits in real time, 24/7, across public and permissioned blockchains. The system builds on JPMorgan’s Kinexys platform and the Patriot settlement network to streamline cross-border payments.
Scheduled for full launch in 2026, Kinexys Fund Flow will extend tokenization to assets such as private credit and real estate. This initiative aims to set a new industry standard, reduce fragmentation, and boost efficiency in global payment rails.
Institutional interest in deposit tokens is rising: a 2024 BIS survey reports over one-third of commercial banks are piloting deposit tokens. Traders should watch regulatory updates and tech advancements as deposit tokens and RWA tokenization reshape digital finance.
Bullish
The partnership between JPMorgan and DBS to launch a 24/7 interoperable deposit token framework signals strong institutional commitment to onchain settlement. In the short term, this reduces counterparty risk and increases liquidity demand for tokenized assets on public and permissioned blockchains, potentially driving higher trading volumes. Over the long run, setting industry standards and expanding tokenization to private credit and real estate can foster deeper adoption of blockchain-based payment rails, benefiting related token ecosystems and bolstering market resilience. Historical pilots by major banks show banking-led token solutions enhance trust and integration, making this development bullish for the broader crypto market.