Singapore’s DBS Bank Launches Blockchain-Enabled Treasury Tokens Pilot

Singapore's largest bank by assets, DBS, disclosed the launch of the treasury tokens pilot through its partnership with Ant International.

DBS noted that the pilot launch would operate on the bank's permissioned blockchain. This will enable instant multi-currency funds and liquidity management for several entities across multiple markets.

Singapore's Bank Announces Pilot Launch of Blockchain-Based Treasury Tokens

The Singapore-based bank DBS has announced the pilot launch of its blockchain-enabled treasury tokens. The bank will conduct the pilot in collaboration with digital asset provider Ant International, a subsidiary of Ant Group.

The bank also disclosed that the pilot roll-out will run on its permissioned blockchain.DBS' permissioned blockchain is compatible with Ethereum Virtual Machine (EVM) and will be integrated with the bank's core payments system.

Such compatibility and integration boost the system's strength, flexibility, and interoperability with different industry payment infrastructures connected to DBS.

Moreover, the blockchain has already been used on Ant International's treasury management platform, Whale, to facilitate tax refund transactions and cross-border remittances.

Ant Internation will utilize the tokens for instant multi-currency treasury and liquidity management for its entities across several markets through the partnership.

Also, Ant International will leverage blockchain-based treasury tokens to accelerate its transaction settlements. By doing so, the firm could cut down the settlement timeline of its intra-group transactions from days to seconds.

DBS stated: This optimizes intra-group liquidity and working capital, providing corporate treasurers with greater visibility, predictability, and control over the entire group's cash position."

In addition, DBS pointed out that the initiative aims to optimize workflow and visibility. Ant International will enjoy an uninterrupted experience while managing its intragroup liquidity.

Besides the infusion of blockchain technology, Ant's Whale promotes the project's efficiency. It enhances the transparency and speed of fund transfers between different bank accounts.

DBS Initiative Confirms the Test And Benefits of Tokenization

DBS indicated that its treasury token initiative reflects the firm's knowledge and robust systems. Moreover, the bank enhanced its developmental and innovative prowess while participating in the Monetary Authority of Singapore's (MAS) Project Orchid and Project Guardian.

According to the DBS, its treasury tokens are among other projects tested during Project Guardian, which explored the benefits of tokenization.

Lim Soon Chong, DBS Bank's group head of global transaction services, reacted to the new initiative. He stated that the project aims to resolve a crucial need regarding the rise of e-commerce and on-demand services.

Chong noted: DBS Treasury Tokens and our partnership with Ant International demonstrates how corporates can seize such opportunities with full confidence that their liquidity management capabilities can scale in tandem."

Further, the executive highlighted that DBS's blockchain is pivotal for maintaining efficiencies and capacities within traditional banking services. The bank's functionalities support fractionalized, programmable, and atomic value transfer.

Ant International also participated in Project Guardian. The company focuses on real-time multi-currency clearing and settlement across more than 40 countries.

According to Ant International's Head of Platform Tech, Kelvin Li, the partnership with DBS is a formidable move. He said it provides the firm the right edge to address issues, such as transaction costs and risks associated with cross-border transfers.

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