Singapore’s DBS Bank has introduced blockchain-driven banking services with tokenization and smart contract capabilities for institutional investors.
On October 18, the leading financial institution said the DBS token service is designed to enhance transaction banking and improve operational efficiency for institutional customers.
DBS Token Service
According to the bank, the DBS token service enables real-time 24/7 payment settlement using the bank's proprietary permissioned blockchain, which is compatible with Ethereum Virtual Machine (EVM).
The solution also integrates DBS's core payments engine with payment networks from various industries. Smart contracts allow financial institutions to manage funds according to pre-set conditions for increased security and transparency.
Permissioned blockchain for banks gives you full control over these services and ensures compliance with regulatory standards. Unlike open public blockchains, permissioned blockchains provide controlled access, making them ideal for businesses and governments.
According to DBS, this approach will enable banks to leverage the benefits of blockchain technology while maintaining compliance with global regulatory practices.
Lim Soon Chong, head of global transaction services at DBS Group, highlighted that the service meets 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 increase business resilience.
Mr. Chong said:
“DBS Token Services enable enterprises and the public sector to optimize liquidity management, streamline operational workflows, strengthen business resiliency, and unlock new opportunities for engagement with end customers and users. You can.”
He added that the product is an important step in transaction banking and demonstrates how established financial institutions can leverage blockchain technology.
Solutions utilizing DBS blockchain
The new token service builds on DBS's existing blockchain-based products, including Treasury Tokens, Conditional Payments, and Programmable Rewards.
Currently being piloted in collaboration with Ant International, Treasury Token provides a liquidity management solution. The service supports real-time multi-currency intra-group transfers, allowing businesses to settle transactions instantly, regardless of time zone or banking hours.
DBS has also piloted Conditional Payments, a smart contract-based solution to streamline payment workflows. DBS has worked with Enterprise Singapore and the Singapore Fintech Association to demonstrate that programmable contracts can enhance governance by controlling the disbursement of funds to intermediaries.
In addition, DBS is exploring Programmable Rewards, which will allow educational 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 program. The pilot aims to test programmable rewards using a virtual digital Hong Kong dollar (e-HKD) to support ESG-focused reward platforms and enhance consumer incentive programs.
These services demonstrate how traditional financial institutions can use blockchain technology and smart contracts to deliver innovative customer experiences.
