The effort aims to make tokens issued by one bank redeemable through the other bank’s service.
According to an announcement, the project will link DBS Token Services with Kinexys Digital Payments so institutional clients can transfer tokenized deposits and settle in real time.
Both banks already offer 24/7 liquidity and instant settlement inside their own networks. This work is meant to let those benefits cross bank boundaries.
Work like this usually begins with pilots on a small set of networks and narrow use cases, then scales if the tests go well. Reports note that this kind of cross-issuer approach by JPMorgan and DBS could cut the need for private stablecoins in some institutional flows.
But banks will likely use controlled gateways and clear legal agreements rather than fully trustless bridges, since they must protect depositors and follow rules.
A 2024 survey by the Bank for International Settlements found that banks in almost one third of the countries surveyed have started, tested, or studied tokenized deposits. This shows that both regulators and banks are already paying attention.
Once DBS and Kinexys get their system running, other banks might follow with similar projects, which could change how and where companies move money across borders.
Featured image from Forage, chart from TradingView
