A new blockchain-based service called DBS Token Services has been unveiled by DBS Bank with the goal of streamlining institutional banking procedures.
According to a DBS press release, the DBS Token Services will connect the bank’s permissioned blockchain, which is compatible with the Ethereum Virtual Machine, its core payment engine, and many industry payment infrastructures.Â
Real-time payments via blockchain
Institutions can program the governance of funds, such as Treasury Tokens, Conditional Payments, and Programmable Rewards, thanks to smart contracts.
Through the use of a permissioned blockchain—a system in which only authorized users may communicate—this move will enable real-time payment settlements.Â
Tokenization, for those not aware with the technology, is the process of converting assets into digital tokens that may be exchanged or handled more effectively in the banking industry.
Smart contracts are self-executing contracts that increase transaction security and transparency by automatically enforcing their terms.
DBS hopes to give institutions a more effective and safe banking experience by taking this action. This launch comes after DBS’s earlier blockchain initiatives, such as government awards based on blockchain technology and a pilot program for treasury tokens.
The bank is demonstrating its wider commitment to blockchain and digital assets by branching out into the trading of cryptocurrency options.
