The Singaporean Bank DBS Launches Blockchain-based Banking Services for Institutional Clients
The largest bank in Singapore, DBS, has taken a new step in integrating blockchain technology by launching an innovative range of banking services for institutional clients. Through this initiative, the bank aims to improve liquidity management and streamline operational workflows while offering real-time settlement solutions.
DBS Offers Optimized Banking Solution Through Tokenization
The new offering from DBS, known as DBS Token Services, is built on a permissioned blockchain that is compatible with the Ethereum Virtual Machine (EVM), allowing for instant and real-time payment settlements. This system is based on the bank’s central payment infrastructure as well as several industry infrastructures. By adopting a private blockchain, DBS retains control over platform access, ensuring strict compliance with regulatory standards while benefiting from the advantages of blockchain technology.
A Response to the Growing Demand for Digital Banking Services
According to Lim Soon Chong, Head of Group Global Transaction Services at DBS, this new suite of services comes in the context of accelerated digital transformation:
“To meet the massive shift of human activities and businesses towards on-demand digital services, enterprises and public entities are reinventing their operational models and customer engagement strategies.”
In this framework, DBS Token Services position themselves as a response to the needs of a new generation of “always-on” banking services, aiming to enhance business resilience and open new opportunities for interaction with end customers.
A Step Forward for Transactional Banking
The new tokenized services from DBS not only optimize liquidity management but also simplify operational processes through automation and smart contracts. These innovations are designed to provide institutional clients with greater flexibility in managing their cash flows while ensuring enhanced security and transparent processes.
This project is part of a series of initiatives by DBS to integrate blockchain solutions into its offerings, although some of these initiatives are still in the pilot phase. For example, DBS recently launched Treasury Tokens, a treasury and liquidity management solution developed in partnership with Ant International.
Exploring Smart Contracts and Conditional Payments
In its commitment to integrate cutting-edge technologies, DBS has also conducted a pilot project in collaboration with Enterprise Singapore and the Singapore Fintech Association to test conditional payments. The goal is to demonstrate the potential of smart contracts in improving complex payment flows. This approach enables the automation of certain transactions and introduces a new dimension of efficiency in banking operations.
Furthermore, DBS is exploring the use cases of smart contracts in digital voucher programs. These programs include phase 2 of the e-HKD pilot project by the Hong Kong Monetary Authority, which introduces digital green vouchers. These vouchers, awarded as rewards for green actions, can be used to purchase eco-friendly products and services from designated merchants, including small and medium enterprises.
