JPMorgan and DBS Develop Cross-Chain Bridge to Compete with Stablecoin Leaders

JPMorgan Chase & Co. and DBS Bank, Singapore’s top financial institution, are working together to develop a cross-chain system that will enable institutional clients to transfer tokenized deposits instantly. This represents a significant evolution in how established banks are building digital asset infrastructure, according to a

. By connecting DBS Token Services with JPMorgan’s Kinexys Digital Payments, the partnership establishes a platform for uninterrupted settlements at any time, operating across both public and private blockchains, as highlighted in a . Described as an “interoperability highway,” this project is designed to broaden the scope of cross-border payments while preserving the “singleness of money”—ensuring that tokenized deposits maintain their value across various networks, according to a .

This collaboration builds on JPMorgan’s recent ventures into decentralized finance (DeFi), such as issuing a USD deposit token on Coinbase’s Base blockchain, as noted by

. For DBS customers, the new framework will make it possible to move tokenized deposits to JPMorgan clients and vice versa, sidestepping conventional payment systems, according to a . This development mirrors a wider industry movement: nearly one in three banks worldwide are now investigating or rolling out tokenized deposit solutions, based on data from the Bank for International Settlements and reported by Yahoo Finance.

This trend underscores intensifying rivalry in the stablecoin and tokenized asset sectors. Although U.S. dollar-backed stablecoins like

and currently lead global liquidity with a combined market capitalization of $305 billion, new regulations in Europe—such as the Markets in Crypto-Assets (MiCA) framework—are encouraging the creation of euro-based alternatives, as reported by . Despite these regulatory advancements, euro stablecoins still represent a small segment of the market at $680 million, prompting the European Central Bank to caution that continued U.S. dominance in innovation could threaten Europe’s financial independence, as noted by Cointelegraph.

At the same time, Asian economies are forging their own approaches. Japan has introduced one of the earliest regulatory frameworks for stablecoins, while Singapore’s DBS is using its alliance with

to lead in cross-border tokenization, according to Cointelegraph. This partnership is part of a larger trend among international banks to lessen dependence on centralized systems, with initiatives like ING’s euro stablecoin project aiming to strengthen Europe’s payment autonomy, as reported by Cointelegraph.

Some critics point out that tokenized deposits, despite their potential, still face obstacles related to scalability and regulatory compliance. Nonetheless, supporters such as DBS’s Rachel Chew highlight the adaptability these solutions provide for global enterprises, allowing for instant settlements and greater access for institutional clients, according to a Coinpedia report. As the sector continues to develop, the progress of frameworks like those from JPMorgan and DBS could establish new standards for interoperability and institutional use in cross-chain environments.