DBS Bank has introduced DBS Token Services, a suite of payment services powered by its permissioned blockchain.
Asian banking giant DBS Bank is launching new blockchain-based features geared toward institutions called DBS Token Services. The announcement came on October 18 through a press release that mentioned the services would “integrate tokenisation and smart contract-enabled capabilities with its award-winning banking services.”
These features would be provided via a permissioned blockchain deployed by the bank. Permissioned blockchains are networks controlled by centralized authorities like banks, meaning they would not allow anybody to operate the nodes. Rather, the entities controlling the networks operate the nodes themselves. Thus, these chains are not decentralized like Bitcoin or Ethereum.
Moving to a blockchain setup allows DBS to offer services to its institutional partners 24/7 as opposed to processing settlements during working hours, which is how banks operate. The bank also mentioned its blockchain is Ethereum Virtual Machine (EVM)-compatible. Smart contracts are thus compatible with its blockchain, allowing its partner institutions to govern funds and transactions according to predefined conditions.
DBS said this would enhance transparency and security on its network. It added, “Using a permissioned blockchain provides DBS full control over these services, enabling the bank to harness the benefits of blockchain technology while adhering to compliance standards.”
Through its blockchain launch, DBS will offer its services around three pillars: “Treasury Tokens,” “Conditional Payments,” and “Programmable Rewards.” It believes these aspects will exemplify how institutions use blockchain and smart contract technology to “deliver new client experiences.”
“A new generation of “always-on” banking services is essential to support this shift and transformation,” said Lim Soong Chong, Group Head of Global Transaction Services, DBS Bank, about its new suite of blockchain-powered services. “By leveraging tokenisation and smart contract capabilities, DBS Token Services enables companies and public sector entities to optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement.”
DBS Previously Introduced Blockchain-Powered Grant Disbursements
DBS has been working with blockchain technology for a while now. In August, it rolled out a government-based grant deployment system in Singapore, its operational base. In the pilot for this program, DBS collaborated with the Singapore Fintech Association (SFA), as the latter disbursed grants to 27 members.
The pilot displayed the power of blockchain and smart contract technologies in enhancing grant distribution processes. It improved governance by eliminating manual cash handling while maintaining transparency.
