What we can learn from JPMorgan, Societe Generale, Siemens, and UBS
Tokenization is being explored by some of the world’s largest financial institutions. However when we analyse the pilots undertaken closely, we can observe that while technology is sound, scalability and commercial traction remain uneven.
This article dives into four institutional pilots — JPMorgan (Onyx), Société Générale, Siemens, and UBS — exploring what worked, what didn’t, and what these experiments reveal about the path ahead.
Why were these 4 chosen? These four pilots showcase institution-led tokenization (either building in-house infrastructure or issuing tokenized assets themselves) across diverse verticals spanning payments, capital markets, real economy applications, and asset management.
- JPMorgan’s Kinexys and Tokenized Collateral Network (TCN) are foundational infrastructure
- Societe Generale is experimenting with tokenized debt and stablecoins
- UBS demonstrates tokenization in wealth and fund management
- Siemens represents a corporate issuance on public blockchains
JPMorgan Kinexys (Formerly, Onyx) — Leading with Tokenized Deposits and Blockchain Infrastructure
Overview:
- Launched in 2020 and originally referred to as Onyx, JP Morgan’s Kinexys is arguably one of the most advanced institutional tokenization efforts.
- Through its JPM Coin and TCN, the bank is testing tokenized money and real-time settlement for institutional clients.
Key Developments:
- JPM Coin is used for intra-bank wholesale payments and repo transactions.
- In 2023, TCN was launched enabling clients to tokenize money market fund shares as collateral for derivatives.
- Recent collaboration with BlackRock and Barclays in tokenized fund settlement.
Key Takeaways:
- Tokenized deposits offer programmability and intraday liquidity, but require close integration with existing systems.
- JPMorgan has a unique advantage with its own blockchain (Kinexys Digital Assets) and access to institutional flows.
Societe Generale (SocGen) — Tokenizing Bonds and Structured Products
Overview:
- Forge, which is SocGen’s digital asset arm (active since 2019), has been experimenting with blockchain-based debt issuances and tokenized securities.
Key Developments:
- In 2019, it issued a €100M covered bond as a security token on Ethereum.
- In 2021, it launched EUR CoinVertible, a euro-denominated stablecoin for on-chain settlement.
- In 2023, SocGen issued its first digital green bond as a Security Token directly registered by Forge
- In 2024, Forge leveraged Ethereum blockchain and wholesale Central Bank Digital Currency (CBDs) for Repo Transaction
Key Takeaways:
- Tokenization is being tested by SocGen across a security’s lifecycle, from issuance to custody and settlement.
- Interoperability with traditional or legacy systems as well as lack of regulatory clarity pose as key challenges.
- SocGen’s approach indicates how banks are reimagining capital markets infrastructure.
UBS: Real-World Asset Tokenization in Wealth Management
Overview:
- UBS launched UBS Tokenize, focusing on real estate and private equity tokenization aimed at their HNWI and institutional clients.
Key Developments:
- In Nov 2024, UBS participated in the Monetary Authority of Singapore’s Project Guardian partnering with SBI Digital Markets to issue tokenized money market funds. The new pilot demonstrated how financial institutions can leverage existing Swift infrastructure to facilitate off-chain cash settlements for tokenized funds.
- In Feb 2025, UBS trials blockchain for expanding digital gold reach geographically
Key Takeaways:
- UBS is positioning tokenization as a wealth product enhancer, enabling fractional ownership of illiquid assets.
- Smart contract-based governance and compliance automation were critical.
- Regulatory engagement in sandbox environments (e.g., MAS in Singapore) has accelerated experimentation.
Siemens — Corporate Tokenization Outside of Finance
Overview:
- In early 2023, Siemens issued a €60 million digital bond on a public blockchain (Polygon), directly targeting the corporate funding market.
Key Features:
- Zero participation of traditional central securities depositories
- Investors were able to purchase the bond directly, using digital wallets
- Lower overheads and faster settlement
Key Takeaways:
- Siemens demonstrated how corporates can use tokenization to access capital markets more efficiently.
- Demonstrates that tokenization is not limited to banks — and may disrupt traditional underwriters and clearinghouses.
- Trust and transparency were enabled by public blockchain usage, but legal frameworks had to be navigated carefully.
Emerging Themes
- Institutional Infrastructure Matters: Players like JPMorgan and SocGen are able to leverage their own blockchain platforms and have full control over the asset lifecycle.
- Public vs Permissioned Chains: Siemens goes public (Polygon); Banks prefer permissioned for compliance reasons.
- Regulatory Alignment is Key: A successful pilot requires regulatory alignment — every project that works well has involved either extensive engagement with regulators or being listed in a sandbox.
- Adoption hurdle: Interoperability between DLT infrastructures is still a challenge; the integration with legacy financial market infrastructure continues to hinder adoption.
Conclusion: Pilots to Institutional Adoption
- These pilots largely represent a mindset shift amongst traditional financial institutions rather than a mere proof of concept
- What started as careful experiments is now becoming dedicated infrastructure spend.
- Creating incentives for the ecosystem as a whole — regulators, issuers, investors and tech providers — will be the next step of moving towards scale.
- As the pioneers refine their models, there is a shift towards programmable finance, 24x7 markets and democratized access.
References
- https://www.jpmorgan.com/kinexys/index
- https://www.ledgerinsights.com/jp-morgan-tokenized-collateral-network-tcn/
- https://www.coindesk.com/business/2023/10/11/jpmorgan-debuts-tokenized-blackrock-shares-as-collateral-with-barclays
- https://www.securities-services.societegenerale.com/en/insights/views/news/european-pilot-regime-experimental-regulations-foster-innovation/
- https://www.taylorwessing.com/en/insights-and-events/insights/2022/06/dlt-pilot-regime
- https://www.societegenerale.com/en/news/press-release/first-inaugural-digital-green-bond-public-blockchain
- https://www.sgforge.com/
- https://coingeek.com/singapore-sbi-ubs-issue-tokenized-funds-under-project-guardian/
- https://www.ledgerinsights.com/ubs-trials-blockchain-for-expanding-digital-gold-reach-geographically/
- https://www.ledgerinsights.com/siemens-digital-bond-blockchain/
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Artist Bio
Gaya Chandrasekaran is a London-based contemporary artist. Born in the coastal city of Chennai, India, her artistic practice is deeply influenced by the vivid colors and rich cultural heritage of her upbringing. Working primarily with acrylics, palette knives, and gilded gold leaf, she creates layered, emotive landscapes that invite quiet introspection and a sense of transcendence.
Gaya has trained in India and at the Slade School of Fine Art in London. Her artworks have been exhibited widely across the UK, US and Europe, with features in prominent art publications such as Contemporary Art Curator, Artist Talk, and ArtistCloseUp magazines.
Her paintings have been reviewed by Tabish Khan, a renowned London art critic, and are held in private collections across the US, UK, Spain, Italy, Brazil, and India — including a permanent display at the London Business School.
Through her abstract landscapes, Gaya explores themes of shared human experience — the search for meaning (Quest), the inner voice of contemplation (Soliloquy), cycles of transformation (Rebirth), and the pursuit of spiritual growth (Nirvana). Her paintings serve as a visual meditation on nature and the profound emotional terrain of life itself.
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