DBS Bank, in partnership with Ant International, has launched a blockchain-based treasury token pilot for instant, multicurrency management.
The pilot introduces DBS Treasury Tokens on a permissioned, EVM-compatible blockchain, thereby improving corporate liquidity management across multiple markets.
DBS Bank, a multinational banking and financial services company, has partnered with Ant International, a digital payment provider, to develop a novel blockchain-based treasury and liquidity management solution.
On August 13, DBS Bank announced the pilot launch of DBS Treasury Tokens, which Ant International will utilize for instant and multicurrency treasury and liquidity management.
Ant International will utilize the new DBS Treasury Tokens that are currently present on DBS’ permissioned blockchain for its entities in various markets.DBS incorporates a permissioned blockchain that is compatible with the EVM.
Permissioned blockchains, which are also referred to as “private blockchains,” are networks that contain an access control layer. This introduces a security mechanism that restricts the authority of blockchain participants to specific pre-approved levels.
In order to gain access to the network, users must obtain authorization from the network proprietor. Although permissioned blockchains employ distributed ledger technology (DLT), they are only partially decentralized.
DBS asserts that its permissioned blockchain is compatible with the Ethereum Virtual Machine (EVM) and is integrated with the bank’s main payments engine.
This advancement improves the system’s interoperability and extensibility in conjunction with a variety of industry payment infrastructures that are connected to DBS.
The blockchain has been integrated with Whale, the treasury management infrastructure of Ant International, according to the Singapore-based bank.
This enables the company to optimize workflow and visibility by managing its intragroup liquidity without interruption, according to DBS.
The transparency and efficacy of fund transfers between bank accounts are improved by the use of artificial intelligence and encryption in Ant’s Whale platform, in addition to blockchain technology.
Investigating the advantages of tokenizationThe announcement stated that the DBS Treasury Tokens initiative incorporates the company’s systems and learnings from its participation in the Monetary Authority of Singapore’s (MAS) initiative Orchid and Project Guardian, which evaluate the advantages of tokenization.
According to DBS, its Treasury Tokens are among the applications that are being evaluated as part of Project Guardian.
Lim Soon Chong, the group head of global transaction services at DBS Bank, stated that the new initiative is addressing an urgent need as a result of the proliferation of on-demand services and e-commerce. The executive stated:
“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.”
The executive also stated that DBS’ permissioned blockchain serves as the foundation for new efficiencies and capabilities in traditional banking services, such as “programmable, fractionalized, and atomic value transfer.”
