To improve treasury and liquidity management, Singapore’s DBS Bank announced a pilot program dubbed “DBS Treasury Tokens,” which results from a cooperation with Ant International, a digital payment and financial services platform.
Ant International will use the new program’s tokens, built on DBS’s permissioned blockchain, which will be utilized in various marketplaces.
Furthermore, Whale, the treasury management platform from Ant International, was integrated with its blockchain. It is a cutting-edge system that improves the effectiveness and transparency of money transfers between bank accounts by utilizing blockchain technology, strong encryption, and artificial intelligence. Thanks to the integration, the company can manage its intragroup liquidity, which enhances productivity and visibility.
The release also made clear that DBS’s participation in the Monetary Authority of Singapore’s (MAS) initiative Orchid and Project Guardian, which investigate the benefits of tokenization, contributed ideas and technologies that are now being used in the new initiative. Notably, one of the applications being tested as part of Project Guardian is the bank’s tokens.
EVM-compatible permissioned blockchain is integrated by DBS
Networks with an access control layer are known as “private blockchains” or permissioned blockchains. This provides a security feature that restricts the amount of pre-approved authority that participants on the blockchain can have. A user must obtain authorization from the network owner to join a network. Permissioned blockchains are only partly decentralized while utilizing distributed ledger technology (DLT).
DBS claims its permissioned blockchain is connected with the bank’s main payments engine and compatible with the Ethereum Virtual Machine (EVM). This enhancement makes the solution more extensible and compatible with a broader range of DBS-connected industrial payment infrastructures.
The Singapore-based bank added that the blockchain has been connected with Ant International’s Whale Treasury Management Platform. This enables uninterrupted intragroup liquidity management for the business, which DBS says improves productivity and visibility.
The Ant’s Whale platform leverages encryption, artificial intelligence, and blockchain technology to improve the efficiency and transparency of money transfers between bank accounts.
Permissioned Blockchain To Create New Efficiencies In Conventional Banking Services
The bank’s permissioned blockchain is also expected to lay the groundwork for cutting-edge capabilities and efficiency in conventional banking services, such as atomic, fractionalized, and programmable value transfers. These blockchains, also called “private blockchains,” have an access control layer that limits participation to those who have received prior authorization. To participate, people need to get approval from the network owner.
Personal and business banking services and wealth management serve DBS Bank’s global clientele. The organization and Paxos, a blockchain infrastructure platform, recently partnered to handle cash and stablecoin reserve custody. This relationship supports DBS’s intention to issue stablecoins and other digital payment tokens in Singapore.
According to the release, the Monetary Authority of Singapore’s (MAS) initiative Orchid and Project Guardian, which evaluate the advantages of tokenization, provided the firm with opportunities to use its systems and lessons learned. These are being applied to the DBS Treasury Tokens initiative.
According to Lim Soon Chong, group head of global transaction services at DBS Bank, the new project is filling a critical gap brought on by the growth of e-commerce and on-demand services.
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