Singapore-based DBS Bank has introduced a new suite of tokenized banking services aimed at helping institutional clients optimize liquidity management, streamline workflows, and enhance business resilience.
The DBS Token Services will provide real-time payment settlements using a permissioned blockchain that is Ethereum Virtual Machine (EVM)-compatible. This blockchain integrates with DBS’s core payment engine and multiple industry payment networks, offering clients access to faster, more efficient payment solutions.
Permissioned Blockchain for Compliance and Control
Unlike open blockchains, permissioned blockchains grant the creator more control over who can access or interact with the network, making them suitable for businesses and governments. According to DBS, this setup enables the bank to reap the benefits of blockchain technology while adhering to stringent compliance standards.
“A new generation of ‘always-on’ banking services is essential to support the shift towards on-demand digital services,” said Lim Soon Chong, Group Head of Global Transaction Services at DBS Bank. He emphasized that the tokenized solutions would help optimize liquidity, streamline operations, and unlock new opportunities for customer engagement.
DBS’s Blockchain Initiatives and Future Plans
DBS has been actively piloting various blockchain-based solutions:
- Treasury Tokens: Launched with Ant International, enabling treasury and liquidity management on a tokenized platform.
- Conditional Payments Pilot: Conducted in partnership with Enterprise Singapore and the Singapore Fintech Association, using smart contracts to improve payment workflows.
DBS also aims to explore digital voucher programs through smart contracts. As part of the Hong Kong Monetary Authority’s e-HKD Pilot Program, DBS plans to issue vouchers to users for completing green actions. These digital vouchers will be redeemable at designated small and medium-sized merchants for sustainable products and services.
Pioneering Blockchain-Driven Banking
“This launch is a significant step forward in transaction banking,” said Lim, highlighting how DBS leverages blockchain technology to deliver cutting-edge financial services. He noted that the initiative demonstrates how established financial institutions can harness blockchain to create new opportunities for business transformation and customer engagement.
DBS’s continued efforts reflect the growing adoption of blockchain solutions in traditional banking, setting the stage for broader integration across financial services.
