The move comes as JPMorgan begins the commercial roll out its deposit token, branded as JPM Coin, on Coinbase’s Base blockchain network. Each deposit token is meant to serve as a digital representation of a commercial bank deposit, providing a bank-backed alternative to privately-issued stablecoins.
Crypto market maker B2C2, Mastercard and Coinbase are amongst the first to execute trial transactions.
The interoperability project with DBS aims to demonstrate the potential of token settlement for cross-bank transactions on-chain.
By way of exaple, JPMorgan says an institutional client would be able to pay a DBS institutional client using J.P. Morgan Deposit Tokens (JPMD) on the Base public blockchain, with the recipient having the ability to exchange or redeem it for equivalent value via DBS Token Services.
Naveen Mallela, global co-head of Kinexys, says: “Working with DBS on this initiative is a clear example of how financial institutions can collaborate to further the benefits of tokenised deposits for institutional clients while protecting the singleness of money and ensuring interoperability across markets.”
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