DBS Bank has launched a new banking service that leverages blockchain technology, aimed at institutional investors. This service features tokenization and smart contract capabilities, designed to improve transaction banking and operational efficiency.
DBS Token Services
On October 18, DBS announced the introduction of its DBS Token Services, which allows real-time payment settlements around the clock. This system operates on the bank’s proprietary permissioned blockchain, which is compatible with the Ethereum Virtual Machine (EVM).
The service integrates DBS’s core payment engine with multiple industry payment networks. By employing smart contracts, institutions can manage their funds according to predefined conditions, enhancing both security and transparency.
With a permissioned blockchain, DBS maintains complete control over its services, ensuring adherence to regulatory standards. Unlike public blockchains, which offer open access, permissioned blockchains are tailored for business and governmental use, providing a controlled environment.
DBS emphasizes that this strategic approach allows the bank to leverage blockchain technology while aligning with global regulatory practices.
Enhancing Transaction Banking
Lim Soon Chong, the Group Head of Global Transaction Services at DBS, noted that the new service meets the rising demand for on-chain digital solutions. He believes DBS Token Services will enable “always-on” banking, which allows institutional clients to optimize liquidity management, streamline operations, and enhance business resilience.
Chong stated, “DBS Token Services enables companies and public sector entities to optimize liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement.”
He also emphasized that this product represents a significant advancement in transaction banking, illustrating how established financial institutions can effectively utilize blockchain technology.
Expanding DBS Blockchain Solutions
The DBS Token Services build upon the bank’s existing blockchain offerings, which include Treasury Tokens, Conditional Payments, and Programmable Rewards.
Currently in a pilot phase with Ant International, Treasury Tokens provide a liquidity management solution that facilitates real-time multi-currency intra-group transfers. This service allows corporations to complete transactions instantly, regardless of banking hours or time zones.
Additionally, DBS has tested Conditional Payments, a solution based on smart contracts designed to simplify payment workflows. In collaboration with Enterprise Singapore and the Singapore Fintech Association, DBS showcased how programmable contracts can improve governance by regulating fund disbursements for intermediaries.
Furthermore, DBS is investigating Programmable Rewards, enabling institutions to develop cost-effective digital voucher programs. Recently, DBS Hong Kong took part in the second phase of the Hong Kong Monetary Authority’s e-HKD Pilot Programme, which aims to test Programmable Rewards with a hypothetical digital Hong Kong dollar (e-HKD). This initiative seeks to support an ESG-focused reward platform, enhancing consumer incentive programs.
These developments illustrate how traditional financial institutions can effectively harness blockchain technology and smart contracts to deliver innovative experiences for their clients.
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