DBS Token Services unlocks instant, 24/7 real-time settlement of payments

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.

DBS Token Services, a suite of blockchain-powered solutions, is poised to revolutionise the financial landscape. This latest offering from DBS, powered by its permissioned blockchain, integrates with the bank's core payment engine and multiple industry payment infrastructures to enable 24/7 real-time settlement of payments.

Institutions can now harness the programmability of smart contracts to govern the use of funds based on predefined conditions, enhancing security and transparency. DBS's permissioned blockchain provides the bank with complete control over these services, allowing it to leverage the benefits of blockchain technology while adhering to compliance standards.

DBS Token Services, a culmination of several years of industry collaborations and experimentation in digital money innovations, includes three key solutions: Treasury Tokens, Conditional Payments, and Programmable Rewards, showcasing how established financial institutions can integrate blockchain technology and smart contracts to deliver new client experiences.

Lim Soon Chong, Group Head of Global Transaction Services, DBS Bank, said: "Companies and public sector entities are fundamentally rethinking their operating models and customer engagement strategies to capture the massive shift of human and corporate activity to on-demand digital services. A new generation of "always-on" banking services is critical to support this shift and transformation."

"DBS Token Services, by enabling tokenisation and smart contract capabilities, empowers 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.

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.

Empowering large corporations operating across multiple markets to settle multi-currency intra-group transactions instantly on a 24/7 basis, Treasury Tokens are not constrained by currency cut-off timings and non-banking hours associated with traditional banking systems. These tokens provide corporate treasurers with greater visibility, predictability and control as they navigate the complexities of an increasingly real-time world.

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.

Offering institutions the potential to redesign and automate overall payment workflows, Conditional Payments can be extended to varying forms of intermediated payments and milestone-based payments. Institutions and their partners stand to benefit from greater transparency, operating efficiencies and control in transactions.

DBS will also be exploring the application of smart contracts for Programmable Rewards. This 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.

Since 2016, DBS has been a driving force in several industry initiatives led by the Monetary Authority of Singapore to explore the potential of blockchain technology in enhancing Singapore's financial landscape. Key initiatives include Project Ubin, Project Orchid, and Project Guardian.

DBS Token Services continues to explore broader applications of blockchain-enabled solutions, including the tokenisation of securities and digitalisation of trade finance. These innovations reflect DBS' ongoing commitment to building a more robust and innovative banking landscape.