Recently, DBS Bank deployed DBS Token Services – a blockchain platform that will increase the effectiveness and compliance of institutional operations. The new service leverages blockchain’s capabilities to ensure real-time, 24/7 payment settlements and uses smart contracts to enhance security and transparency.
Based on DBS’ permissioned blockchain, the platform allows strict control when codifying the necessary regulation standards. One of the leading solutions is Treasury Tokens, which enable users to perform transactions in several currencies at the company level at the speed of light. This service works outside the bureaucratic banking time and currency limitations, efficiently managing liquidity, especially for organizations operating in different markets. The service also exists in Conditional Payments, where programmable fund distributions are done according to certain conditions. This feature was piloted with Enterprise Singapore and the Singapore Fintech Association to demonstrate enhanced efficiency in the governance of grant distribution.
Additionally, DBS is trialing a version of Programmable Rewards based on digital vouchers and sustainability. As a part of the broader e-HKD Pilot Programme, carried out in Hong Kong, the initiative backs ESG campaigns by providing vouchers related to green activities. The company explained that its blockchain interest is not limited to token services, which will likely be evident once the definition of blockchain is understood. The Bank emphasizes securities tokenization and digital trade finance, extending blockchain applications in banking.
Lim Soon Chong, Group Head of Global Transaction Services at DBS Bank, said,
“By leveraging tokenization and smart contract capabilities, 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. 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 draws heavily on DBS’s rich experience in using blockchain technology.
The Bank has been involved in several significant blockchain initiatives: Singapore’s five-phased Project Ubin, which ended in 2020; Project Orchid, on developing a protocol for programmable digital currency; and Project Guardian for better financial market through asset tokenization.
