DBS Bank has introduced DBS Token Services, a suite of banking services that uses blockchain technology to offer faster and more efficient transactions for institutional clients.
The new services allow for 24/7 real-time settlement of payments and utilise smart contracts to increase security and transparency.
This blockchain service operates through DBS’s permissioned blockchain, ensuring full control while maintaining compliance.
DBS Token Services includes solutions like Treasury Tokens, which facilitate instant multi-currency intra-group transactions for large companies, unaffected by traditional currency cut-off times or non-banking hours.
These tokens are designed to streamline liquidity management within companies operating across multiple markets, rather than just cross-border transactions.
Another feature, Conditional Payments, allows for programmable funds disbursement based on pre-set conditions.
This was piloted in a grant disbursement trial with Enterprise Singapore and the Singapore Fintech Association, demonstrating improved governance control over fund distribution.
This was successfully piloted with Enterprise Singapore and the Singapore Fintech Association.
The bank is also exploring Programmable Rewards, a system for creating digital voucher programs with a focus on environmental, social, and governance (ESG) initiatives.
This is being piloted in Hong Kong as part of the e-HKD Pilot Programme, where companies can issue digital vouchers tied to green campaigns.
DBS continues to explore further blockchain applications, including securities tokenisation and digital trade finance.
Lim Soon Chong, Group Head of Global Transaction Services, DBS Bank, said,
“By leveraging tokenisation and smart contract capabilities, DBS Token Services enables companies and public sector entities to optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement.
It marks a significant step forward in transaction banking and demonstrates how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences.”
This launch builds on DBS’s significant experience with blockchain technology.
The bank has been involved in various blockchain initiatives such as Singapore’s Project Ubin, which concluded in 2020 after five phases; Project Orchid, which developed a protocol for programmable digital money; and Project Guardian, aimed at improving liquidity in financial markets through asset tokenisation.
Featured image credit: Edited from Freepik
