DBS Token Services integrates blockchain-enabled capabilities with the bank’s core transaction banking services to deliver new client experiences
Key solutions include Treasury Tokens, Conditional Payments and Programmable Rewards
DBS Token Services is the culmination of several industry pilots; marks next phase in the industrialisation of blockchain technology
DBS announced the introduction of DBS Token Services – a new suite of banking services that integrate tokenisation and smart contract-enabled capabilities with its award-winning banking services. It aims to unlock new transaction banking capabilities and operating efficiencies for its institutional clients.
DBS Token Services unlocks instant, 24/7 real-time settlement of payments by integrating the bank’s Ethereum Virtual Machine-compatible permissioned blockchain, its core payment engine and multiple industry payment infrastructures. In addition, smart contracts enable programmability for institutions to govern the use of funds according to predefined conditions, enhancing security and transparency. 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.
The culmination of several years of industry collaborations and experimentation in digital money innovations, the suite of solutions – Treasury Tokens, Conditional Payments, and Programmable Rewards– exemplifies how established financial institutions can leverage blockchain technology and smart contracts to deliver new client experiences.
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Lim Soon Chong: “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.”
“By leveraging tokenisation and smart contract capabilities, DBS Token Services enables companies and public sector entities to optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement. It marks a significant step forward in transaction banking and demonstrates how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences,” he added.
Treasury Tokens: Solving for traditional treasury frictions
DBS recently launched Treasury Tokens, a next-generation treasury and liquidity management solution, in a pilot with Ant International. This solution currently supports ongoing intra-group transfers within Ant International.
Treasury Tokens empowers large corporations operating across multiple markets to settle multi-currency intra-group transactions instantly on a 24/7 basis, unconstrained by currency cut-off timings and non-banking hours associated with traditional banking systems. Treasury Tokens provide corporate treasurers with greater visibility, predictability and control as they navigate the complexities of an increasingly real-time world.
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Conditional Payments: Smarter payments and workflows
Building upon DBS’ recent programmable grant disbursements pilot with Enterprise Singapore and Singapore Fintech Association, DBS will explore the further application of Conditional Payments, opening up new possibilities for smart contracts to improve payment workflows. The pilot demonstrated the ability to programme conditions governing the disbursement of funds, providing the agency with enhanced governance control over disbursements handled by its appointed intermediary.
Conditional Payments offer institutions the potential to redesign and automate overall payment workflows and can be extended to varying forms of intermediated payments and milestone-based payments. Institutions and their partners can expect to benefit from greater transparency, operating efficiencies and control in transactions.
Programmable Rewards: the future of digital rewards and vouchers
DBS will also be exploring the application of smart contracts forProgrammable Rewards. The solution enables institutions to leverage on programmability to curate digital voucher programmes for their customers in a cost-effective manner.
As part of this exploration, DBS Hong Kong recently announced its participation in the second phase of the Hong Kong Monetary Authority’s e-HKD Pilot Programme. DBS’ pilot aims to examine the use of programmable rewards and a hypothetical e-HKD – a digital Hong Kong dollar – to enhance a consumer incentive programme on an Environmental, Social, and Governance (ESG) reward platform. Participating corporates can create ESG campaigns and set redemption guidelines to foster a green corporate culture and promote participation. Users who complete green actions will receive new digital vouchers, which can be used to purchase green products and services at designated small and mediums-sized merchants.
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Source – prnewswire
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