DBS and Kinexys by JP Morgan are developing an interoperability framework to enable tokenized deposits to move between the two banks across multiple blockchains. The initiative aims to address a key limitation of existing single bank tokenized deposit solutions, which only work between customers of the same institution.
The framework, currently in development, would allow DBS Token Services and Kinexys Digital Payments clients to transact with each other across both public and permissioned blockchain networks. A JP Morgan institutional client could potentially pay a DBS client using JP Morgan Deposit Tokens (JPMD) on the public Base blockchain. The DBS client receiving the JPMD tokens could then choose to either redeem them for fiat currency or convert them into DBS tokens. The goal is to develop a standard that others could use. This builds on JP Morgan’s earlier work with the Massachusetts Institute of Technology Digital Currency Initiative, exploring interoperability standards for bank tokens on open blockchains.
The solution is designed to work across different blockchain environments. Kinexys currently operates blockchain based bank accounts on its permissioned Kinexys blockchain, while its JPMD deposit tokens are being piloted on the public Base blockchain.
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