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DBS Bank said that the DBS Treasury Tokens project will test the benefits of tokenization by applying the company’s systems and learnings developed by working with the Monetary Authority of Singapore (MAS).
DBS Bank, the largest banking institution and financial services company in Singapore, launched a new blockchain-based treasury and liquidity management solution in collaboration with Ant International.
The announcement came on Tuesday, August 13, when DBS Bank also announced the pilot launch of the DBS Treasury tokens. These new DBS Treasury tokens will reside on the DBS’ permissioned blockchain. As part of the partnership. Ant International will use these tokens for instant and multicurrency treasury as well as liquidity management.
The permissioned blockchains are basically private blockchain networks having an access control layer. They come with security mechanisms allowing only the participants in the blockchain to have certain levels of pre-approved authority. As a result, such types of blockchains are only partially decentralized.
DBS Bank said that its permissioned blockchain is compatible with the Ethereum Virtual Machine (EVM), integrated into the bank’s core payments engine. This integration helps to enhance the system’s extensibility as well as interoperability with other industry payment infrastructures linked to DBS.
DBS also stated that its blockchain platform is integrated with Ant International’s treasury management platform, Whale. This will allow DBS to manage its intragroup liquidity uninterruptedly thereby optimizing visibility and workflow.
Apart from blockchain technology, Ant’s whale platform leverages AI and encryption while enhancing the efficiency and transparency of fund transfers between different bank accounts.
Use of DBS Treasury Tokens for Tokenization
The announcement from the Singapore-based bank stated that the DBS Treasury Tokens project will test the benefits of tokenization by applying the company’s systems and learnings developed by working with the Monetary Authority of Singapore (MAS).
DBS has announced that its Treasury Tokens are among the applications being tested under Project Guardian. Lim Soon Chong, DBS Bank’s group head of global transaction services, stated that the project addresses an urgent need driven by the growth of e-commerce and on-demand services. The executive added:
“DBS Treasury Tokens and our partnership with Ant International demonstrates how corporates can seize such opportunities with full confidence that their liquidity management capabilities can scale in tandem.”
Soon Chong also said that DBS’ permissioned blockchain also forms the foundation for new capabilities and efficiencies in traditional banking services that includes “programmable, fractionalized and atomic value transfer”.
