Tokenized deposits: DBS and J.P. Morgan enable 24/7 cross-chain settlement

On 11 November 2025, DBS and J.P. Morgan announced a collaboration to expand tokenized deposits, enabling cross-bank token transfers and testing interoperable blockchain settlements for around-the-clock settlement across public and private ledgers.

How will tokenized deposits enable cross-bank token transfers and interoperable blockchain settlements?

The framework links DBS Token Services with Kinexys Digital Payments, aiming for 24/7 real-time settlement while preserving the singleness of money across ledgers. Moreover, the design targets public private blockchain interoperability, connecting permissioned bank ledgers with public networks to broaden settlement corridors.

How is settlement achieved across chains?

Settlement uses linked rails that update token balances and back-office records in near real time. Consequently, institutions can reduce manual reconciliation and lower counterparty risk. In addition, the approach improves auditability and can speed treasury operations for cross-border flows.

Who benefits from around-the-clock settlement and institutional tokenized payments?

Corporate treasuries and bank treasuries gain faster finality and stronger liquidity management, while custodians face less operational friction. As Naveen Mallela, Global Co0Head of Kinexys, said, “Working with DBS helps preserve the singleness of money and interoperability across markets.” J.P. Morgan/Kinexys announcement

Note: the pilot focuses on wholesale settlement rails rather than consumer wallets, so integration with cash management and FX workflows will be essential. Meanwhile, banks can test around-the-clock settlement and institutional tokenized payments without changing existing balance-sheet treatments.

What are regulators and central banks observing?

The Bank for International Settlements survey finds banks in nearly one third of countries are exploring tokenized deposits, signalling broad industry interest. For more detail, see the BIS survey. That context makes regulatory clarity and recoverability frameworks pivotal for wider rollout.

DBS spokespeople, including Rachel Chew, emphasise practical cash product design and safety, noting the trial seeks operational parity and resilience. The collaboration is a crucial and robust step toward scalable tokenized rails for wholesale finance, though governance, regulatory alignment and technical integration remain pivotal to adoption.