DBS Bank Unveils Blockchain-Powered Banking Platform

DBS Bank, Singapore's largest lender, has taken a significant step into the future of finance with the launch of its new "DBS Token Services" platform, which integrates tokenization and smart contract functionalities into the bank's existing banking services. This gives institutions a more efficient, secure, and transparent way to conduct transactions, the bank said in an announcement on Friday.

DBS Token Services leverages a permissioned blockchain, compatible with the Ethereum Virtual Machine, to enable instant, 24/7 real-time settlement of payments. This eliminates the need for intermediaries and reduces transaction times significantly. Additionally, smart contracts allow institutions to programmatically manage the use of funds, providing enhanced control and automation.

“To capture the massive shift of human and corporate activity to on-demand digital services, companies and public sector entities are reimagining their operating models and customer engagement strategies. A new generation of “always-on” banking services is essential to support this shift and transformation,” Lim Soon Chong, DBS group head of global transaction services, explained.

One of the key features of DBS Token Services is treasury tokens, a solution that allows large corporations to settle multi-currency intra-group transactions instantly. This is a major improvement over traditional banking systems, which often have currency cut-off timings and non-banking hours. This solution currently supports ongoing intra-group transfers within Ant International.

Other features include conditional payments, which enable institutions to program conditions governing the disbursement of funds, and programmable rewards, which allow institutions to create digital voucher programs for their customers.

Other features include conditional payments, which enable institutions to program conditions governing the disbursement of funds, and programmable rewards, which allow institutions to create digital voucher programs for their customers. DBS Hong Kong is currently participating in the Hong Kong Monetary Authority's e-HKD Pilot Program, exploring the use of programmable rewards to enhance ESG incentive programs.

DBS said Token Services is the culmination of several years of research and development, and represents a significant milestone in the bank's efforts to embrace blockchain technology. The platform is expected to have a major impact on the financial industry, as it offers institutions a more efficient, secure, and transparent way to conduct transactions.

Last month, the bank said it would launch over-the-counter cryptocurrency options trading and structured notes for eligible institutional investors and accredited wealth clients, starting in Q4 2024.