Jpmorgan, Dbs Eye Deposit Tokens As Cross-bank Alternative To...
As of 2024, at least one-third of commercial banks were exploring or piloting tokenized deposits, according to a survey by the Bank for International Settlements.
Leading financial institutions are continuing to explore blockchain technology to facilitate cheaper and faster institutional payments, signaling a growing interest in tokenization solutions.
US investment bank JPMorgan and Singapore multinational banking group DBS announced Tuesday that they are developing a blockchain-based tokenization framework to enable onchain transfers between their deposit token ecosystems. The effort aims to set a new industry standard for cross-bank digital payments.
The tokenization framework will allow the two financial institutions to facilitate instant payments around the clock, across both public and permissioned blockchain networks, providing their institutional clients with broader access to cross-bank onchain transactions.
According to DBS, the new framework will allow institutional clients of both banks to exchange or redeem tokenized deposits and conduct real-time cross-border payments on both public and permissioned blockchain networks. The system is designed to operate 24 hours a day, seven days a week, providing what DBS called “round-the-clock availability.”
The new interoperability framework comes amid a period of growing institutional interest in tokenized financial solutions, which are part of the broader tokenized real-world assets (RWA) sector, aiming to bring financial and tangible assets on the blockchain to increase investor access.
At least one-third of surveyed commercial banks have launched, piloted, or researched tokenized deposits, according to a 2024 survey by the Bank for International Settlements (BIS).
Some of the largest Swiss banks, including UBS, PostFinance and Sygnum Bank, are also exploring blockchain-based interbank payments.
On Sept. 16, these institutions completed the first blockchain-based, legally binding payment, proving the technology’s efficacy for bank deposits and institutional payments.
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Source: CoinTelegraph
