Singapore’s DBS Bank has introduced a blockchain-driven banking service for institutional investors, featuring tokenization and smart contract capabilities.
On Oct. 18, the leading financial institution stated that its DBS Token Services is designed to enhance transaction banking and improve operational efficiency for its institutional clients.
DBS Token Services
According to the bank, DBS Token Services enables real-time, 24/7 payment settlements using the bank’s proprietary permissioned blockchain, which is compatible with the Ethereum Virtual Machine (EVM).
This solution also integrates DBS’ core payment engine with various industry payment networks. By utilizing smart contracts, institutions can manage funds according to pre-set conditions aimed at improving security and transparency.
The bank’s permissioned blockchain allows full control over these services, ensuring they comply with regulatory standards. Unlike open, public blockchains, permissioned blockchains provide controlled access, making them ideal for businesses and governments.
According to DBS, this approach allows the bank to harness the benefits of blockchain technology while maintaining compliance with global regulatory practices.
Lim Soon Chong, DBS Group Head of Global Transaction Services, highlighted that the service addresses the growing demand for on-chain digital solutions. He expects DBS Token Services to facilitate “always-on” banking, enabling institutional clients to optimize liquidity management, streamline operations, and boost business resilience.
Chong said:
“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.”
He added that the product marks a significant step in transaction banking and demonstrates how established financial institutions can leverage blockchain technology.
DBS blockchain-powered solutions
The new token service builds on DBS’ existing blockchain-based products, such as Treasury Tokens, Conditional Payments, and Programmable Rewards.
Currently in a pilot with Ant International, Treasury Tokens offers a liquidity management solution. This service supports real-time multi-currency intra-group transfers and allows corporations to settle transactions instantly, regardless of time zones or banking hours.
DBS has also piloted Conditional Payments, a smart contract-based solution for streamlining payment workflows. In collaboration with Enterprise Singapore and the Singapore Fintech Association, DBS demonstrated how programmable contracts can enhance governance by controlling fund disbursements for intermediaries.
Additionally, DBS is exploring Programmable Rewards, which enable institutions to create cost-effective digital voucher programs. As part of this initiative, DBS Hong Kong recently participated in the second phase of the Hong Kong Monetary Authority’s e-HKD Pilot Programme. The pilot aims to test Programmable Rewards using a hypothetical digital Hong Kong dollar (e-HKD) to support an ESG-focused reward platform, enhancing consumer incentive programs.
These offerings demonstrate how traditional financial institutions can use blockchain technology and smart contracts to provide innovative client experiences.
