Singapore Banking Giant DBS to Launch Blockchain-Based Treasury Tokens

The investment bank is proceeding with a pilot project and will team up with the Chinese-based Ant International to roll out the offering.

Banking giant DBS (NASDAQ: DBSDY) is set to commercially launch blockchain-based treasury tokens.

The investment bank will pilot the project by teaming up with Chinese Ant International to roll out the offering. Dubbed the “DBS Treasury Tokens,” the solution will revolutionize liquidity management for global corporations and optimize internal and external processes.

Describing treasury tokens as digital representations of an organization’s reserves, the use cases span from raising funds to performing corporate governance functions. The solution from DBS will be tailor-made to reduce settlement times for large-scale companies without compromising on security standards. Built on the blockchain, the treasury tokens will give corporate treasurers control over cash positions and also facilitate interoperability across multiple jurisdictions.

DBS will be deploying its permissioned blockchain and also banking on Ant International's Whale platform, given its track record of commercial success. The liquidity management platform boasts advanced encryption and AI to offer enterprises increased efficiency and transparency.

“This milestone with DBS is an important step forward in addressing challenges like reducing costs and transaction risks for cross-border payments,” said Kelvin Li, an executive at Ant International. “We have already seen successful use cases on our Whale platform in areas such as instant tax refund services and SME cross-border payments.”

The ledger from DBS is compatible with the Ethereum Virtual Machine (EVM) and can be easily integrated into mainstream financial systems. Once commercially rolled out, the treasury tokens can be used to reward users, raise funds or even stabilize token values, depending on the needs of enterprises.

“DBS Treasury Tokens and our partnership with Ant International demonstrates how corporates can seize such opportunities with full confidence that their liquidity management capabilities can scale in tandem,” said Lim Soon Chong, Head of Global Transaction Services at DBS Bank.

Ant International and DBS have participated in several initiatives rolled out by the Monetary Authority of Singapore (MAS) to explore the application of blockchain in payments. Both firms experimented with several projects under Project Guardian, with DBS focusing on the tokenization of assets.

On the other hand, Ant International's participation in the studies was limited to cross-border transactions, contributing its technical expertise to the experiments. Given its global reach, the Chinese-based firm collaborated with MAS to explore the regulatory implications of launching a regional blockchain-based payment solution.

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