DBS rolls out blockchain-based banking for institutions

As a seasoned researcher with a keen interest in financial technology, I am particularly intrigued by DBS Bank’s recent foray into blockchain-powered services. Having closely followed the evolution of blockchain and its potential applications, it’s fascinating to see traditional financial institutions like DBS embracing this technology to enhance their offerings.


As a forward-thinking crypto investor, I’m thrilled to learn that DBS Bank in Singapore is stepping up their game by introducing an innovative set of blockchain-driven services tailored for their institutional clients. This move not only demonstrates their commitment to staying ahead in the ever-evolving digital currency landscape but also opens up exciting opportunities for collaboration and growth within our community.

In an announcement sent to CryptoMoon, DBS introduced the “DBS Token Services,” which facilitate real-time payment settlements using the bank’s permissioned blockchain. 

In simpler terms, permissioned blockchains are systems where the participants can engage in transactions, but only those who have been previously authorized can take part. Unlike regular blockchains, these aren’t completely decentralized since the access is controlled by a predefined set of rules or authorities.

Previously, DBS had revealed that its Ethereum Virtual Machine (EVM) compatible, permissioned blockchain was capable, as they launched their blockchain-based treasury token pilot on August 13.

DBS to use smart contracts to govern funds

The bank said that smart contracts would enable institutions to govern funds with predefined conditions, which 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, who serves as the head of global transaction services at DBS Bank, emphasized the necessity of introducing a fresh wave of “continuously available” banking services. This move aims to accommodate the growing preference towards digital service options.

The executive said that companies and public sector entities are already “reimagining their operating models” and engagement strategies.  

According to Chong, tokenization and smart contracts enable DBS Token Services to enhance liquidity management and simplify operational procedures for their clients. These tools open up possibilities for increased interaction with both end-customers and end-users, boosting business robustness.

He added 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

Apart from launching its new token services and a trial of treasury tokens, DBS also unveiled various advancements associated with blockchain technology in the year 2024.

On August 22nd, DBS Bank introduced a trial for blockchain technology in administering government grants. According to DBS, this system strengthens administrative oversight and minimizes the requirement for manual cash transaction handling.

On September 17th, the bank announced their intention to initiate crypto options trading and issuance of structured investment notes for institutional investors, which will be based on the prices of Bitcoin (BTC) and Ether (ETH). DBS has declared they will provide these financial products.

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2024-10-18 14:12