Kinexys by JP Morgan, the bank’s blockchain arm, and the Massachusetts Institute of Technology’s Digital Currency Initiative (MIT DCI) have collaborated on a paper to explore standards for bank tokens on open blockchains. The authors suggest primarily relying on existing Ethereum standards, but propose two new ones they believe are needed for interbank payments. They also suggest areas where regulations might be relaxed for blockchain-based bank payments.
By open blockchains they mean permissionless blockchains and also open permissioned blockchains such as Unified Ledgers and Singapore’s Global Layer One. In the latter case, a key differentiating feature is the blockchain node operators are regulated.
Apart from stablecoins, most live solutions for blockchain-based bank payments or tokenized deposits have mainly been on permissioned networks and for single banks. There are quite a few single bank solutions such as Kinexys Digital Payments (formerly JPM Coin), Citi Token Solutions and Customers Bank which uses Tassat’s technology.
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