According to Cointelegraph, Singapore’s DBS Bank has introduced a new suite of blockchain-powered services for its institutional clients. The bank announced the launch of “DBS Token Services,” which facilitate real-time payment settlements using the bank’s permissioned blockchain. Permissioned blockchains are networks with an access layer that allows participants to interact with a pre-approved level of authority. While these blockchains use distributed ledger technology, they are not fully decentralized.
DBS had previously announced the capabilities of its Ethereum Virtual Machine (EVM) compatible permissioned chain when it unveiled its blockchain-powered treasury tokens pilot on August 13. The bank stated that smart contracts would enable institutions to govern funds with predefined conditions, enhancing security and transparency. DBS emphasized that using a permissioned blockchain provides the bank full control over these services, allowing it to harness the benefits of blockchain technology while adhering to compliance standards.
Lim Soon Chong, the group head of global transaction services at DBS Bank, highlighted the importance of a new generation of “always on” banking services to support the growing demand for digital services. He noted that companies and public sector entities are already reimagining their operating models and engagement strategies. Chong explained that tokenization and smart contracts allow DBS Token Services to optimize liquidity management and streamline operational workflows for its clients. These technologies unlock new opportunities for end-customer and end-user engagement and strengthen business resilience. He added that this development marks a significant step forward in transaction banking and demonstrates how traditional financial institutions can use blockchain technology to provide new services to their clients.
In addition to its new token services and treasury tokens pilot, DBS has introduced other blockchain-related developments in 2024. On August 22, DBS Bank announced a pilot for blockchain-based government grants, which the bank said enhances governance control and reduces the need for manually processing cash handling. On September 17, the bank revealed plans to launch over-the-counter (OTC) crypto options trading and structured notes for institutional investors, offering products related to Bitcoin (BTC) and Ether (ETH) prices.
