Singapore’s DBS Bank has introduced a new set of banking services tailored for institutional clients, incorporating tokenization and smart contract capabilities. The DBS Token Services will facilitate instant, real-time payment settlements through the bank’s Ethereum Virtual Machine-compatible permissioned blockchain, core payment engine, and various industry payment infrastructures.
Permissioned blockchains provide the creator with more control over who can access the blockchain, making them ideal for businesses and governments compared to open, permissionless blockchains. By utilizing this technology, DBS aims to leverage the benefits of blockchain while complying with regulatory standards.
Lim Soon Chong, Group Head of Global Transaction Services at DBS Bank, emphasized the importance of adapting to the digital shift in both individual and corporate activities. He highlighted that the new generation of ‘always-on’ banking services is crucial to support this transformation by optimizing liquidity management, streamlining operational workflows, enhancing business resilience, and creating new opportunities for customer engagement.
DBS Token Services represents a significant advancement in transaction banking, showcasing how traditional financial institutions can utilize blockchain technology to offer innovative features and experiences. The bank has been actively integrating blockchain solutions into its services, with initiatives such as Treasury Tokens for treasury and liquidity management in partnership with Ant International.
DBS has also explored the use of smart contracts for conditional payments in collaboration with Enterprise Singapore and the Singapore Fintech Association, paving the way for improved payment workflows. Furthermore, the bank plans to utilize smart contracts for digital voucher programs, including participation in the Hong Kong Monetary Authority’s e-HKD Pilot Program’s second phase, where users can earn digital vouchers for completing green actions.
In a bid to enhance customer experience and operational efficiency, DBS continues to innovate with blockchain technology, signaling its commitment to embracing digital transformation in the banking sector. The bank’s strategic initiatives underscore its proactive approach to staying ahead of industry trends and meeting the evolving needs of institutional clients in an increasingly digital landscape.
