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DBS Bank has launched its “DBS Token Services” for real-time blockchain payment settlements, using smart contracts for enhanced security and transparency.
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Singapore’s DBS Bank has introduced a new suite of blockchain-powered services for its institutional clients.
In an announcement sent to Cointelegraph, DBS introduced the “DBS Token Services,” which facilitates real-time payment settlements using the bank’s permissioned blockchain.
Permissioned blockchains are networks with an access layer that allows participants to only interact with a pre-approved level of authority. While these blockchains use distributed ledger technology, they are not fully decentralized.
DBS also previously announced the capabilities of its Ethereum Virtual Machine (EVM) compatible permissioned chain when it unveiled its blockchain-powered treasury tokens pilot on Aug. 13.
DBS to use smart contracts to govern funds
The bank explained that smart contracts would enable institutions to govern funds with predefined conditions. DBS said that this would enhance security and transparency. DBS wrote:
“Using a permissioned blockchain provides DBS full control over these services, enabling the bank 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, said that a new generation of “always on” banking services is essential to support a shift in demand for digital services.
The executive said that companies and public sector entities are already “reimagining their operating models” and engagement strategies.
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Chong also believes that tokenization and smart contracts allow DBS Token Services to optimize liquidity management and streamline operational workflows for its clients. The executive also said that they unlock new opportunities for end-customer and end-user engagement and strengthen business resilience.
The executive believes that this “marks a significant step forward” in transaction banking and shows how traditional financial institutions can use blockchain technology to provide new services to their clients.
DBS widens list of blockchain-powered features
In addition to its newly unveiled token services and treasury tokens pilot, DBS has also introduced other blockchain-related developments in 2024.
On Aug. 22, DBS Bank announced a pilot for blockchain-based government grants. DBS said that the solution enhances governance control and reduces the need for manually processing cash handling.
On Sept. 17, the bank announced it would launch over-the-counter (OTC) crypto options trading and structured notes for institutional investors. DBS said it would offer products related to Bitcoin (BTC) and Ether (ETH) prices.
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This article first appeared at Cointelegraph.com News
