According to Cointelegraph, Singapore’s DBS Bank has introduced a blockchain-based solution to streamline the disbursement of government grants. The bank collaborated with Enterprise Singapore (ESG) and the Singapore Fintech Association (SFA) for the pilot project. This initiative aims to enhance efficiency, governance, and speed in grant distribution using smart contracts.
During the pilot, the SFA disbursed grants to 27 members, demonstrating how blockchain technology can improve the process. DBS Bank’s permissioned blockchain allows ESG and intermediaries like the SFA to set program conditions and manage disbursements. Once the conditions are met, smart contracts automatically verify and release the funds to the beneficiaries. This method reduces the need for manual processing and speeds up cash payouts.
The permissioned blockchain also provides full visibility of the process, ensuring greater transparency for all involved organizations. These blockchains have an access control layer, granting participants a pre-approved level of authority, making them only partially decentralized.
DBS Bank highlighted that the programmable grants pilot incorporates insights from Project Orchid, a digital currency initiative led by the Monetary Authority of Singapore (MAS). This project explores the benefits of tokenization with local stakeholders. Additionally, DBS has previously worked with Ant International on a blockchain-based treasury and liquidity management solution, launching treasury tokens for liquidity management within its Ethereum Virtual Machine (EVM) permissioned blockchain.
The solution leverages systems developed during DBS’s participation in another MAS-led digital currency effort, Project Guardian.
