DBS Bank has announced “DBS Token Services” for real-time blockchain payment settlements, which use smart contracts to improve security and transparency.
Singapore’s DBS Bank has launched a new range of blockchain-powered services for its institutional clients.
In an announcement shared, DBS introduced the “DBS Token Services,” which enable real-time payment settlements via the bank’s permissioned blockchain.
Permissioned blockchains are networks with restricted access, allowing participants to interact only with a pre-approved authority level. While they use distributed ledger technology, they are not fully decentralized.
Previously, DBS had highlighted its Ethereum Virtual Machine (EVM) compatible permissioned blockchain when it rolled out its blockchain-powered treasury tokens pilot on August 13.
Smart Contracts for Managing Funds
DBS explained that smart contracts will allow institutions to govern funds under predefined conditions, improving security and transparency. The bank noted:
“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, head of global transaction services at DBS Bank, emphasized the need for “always-on” banking services to meet the growing demand for digital solutions.
He noted that businesses and public sector entities are already “reimagining their operating models” and engagement strategies.
Chong also highlighted that tokenization and smart contracts in DBS Token Services would help optimize liquidity management and streamline operational processes for clients, while opening new opportunities for customer engagement and strengthening business resilience.
He remarked that this development “marks a significant step forward” in transaction banking and demonstrates how traditional financial institutions can use blockchain to offer new services.
Expanding Blockchain-Powered Features
In addition to the newly launched token services and treasury tokens pilot, DBS has made several other blockchain advancements in 2024.
On August 22, the bank announced a pilot for blockchain-based government grants, which it said would improve governance and reduce the need for manual cash handling.
On September 17, DBS revealed plans to launch over-the-counter (OTC) crypto options trading and structured notes for institutional investors, offering products tied to Bitcoin and Ether prices.
