DBS, the largest bank in Southeast Asia, has launched a real-time payment service based on blockchain, ushering in a new era for business transactions.
On October 18, Singapore's DBS Bank introduced "DBS Token Services", a real-time payment service built on a permissioned blockchain platform, exclusively for corporate clients. This move marks a significant step for DBS in applying blockchain technology to banking operations, affirming its pioneering position in the digital finance sector.
Permissioned blockchain, also known as controlled access distributed ledger technology (DLT), is a type of distributed ledger where access is restricted. Unlike public blockchain, only approved members are allowed to participate and conduct transactions on this network. DBS chose a permissioned blockchain to ensure security, regulatory compliance, and optimal control over the service.
Previously, in August 2024, DBS had tested the deployment of treasury tokens on an Ethereum Virtual Machine (EVM)-compatible blockchain platform. The integration of smart contracts allows for the management of assets based on pre-established conditions, enhancing transparency and security for transactions.
DBS: Optimizing Banking Operations with Blockchain
Mr. Lim Soon Chong, Head of Global Transaction Services at DBS, noted that the demand for "always-on" banking services is increasing, driving a strong digital transformation process. Businesses and organizations are reshaping their operating models and customer interaction strategies.
According to Mr. Chong, the application of tokenization and smart contracts will help optimize liquidity management, simplify operational processes, and create new opportunities for end-user engagement, while also enhancing business resilience.
DBS believes that blockchain is the key to improving efficiency and customer experience in the transactional banking sector. The launch of DBS Token Services is a clear demonstration of the bank's commitment to pioneering the adoption of advanced technologies, providing optimal solutions for corporate clients.
In addition to the new token service, DBS is also actively implementing various other blockchain initiatives throughout 2024. On August 22, the bank tested a blockchain-based government subsidy management solution to enhance control and reduce manual cash processing workflows.
On September 17, DBS announced plans to launch OTC crypto option trading services and structured financial products for institutional investors, focusing on Bitcoin and Ether.
