DBS Bank, Singapore’s largest lender, takes an important step into the future of finance with the launch of its new ‘DBS Token Services’ platform, which integrates tokenization and smart contract capabilities into the bank’s existing banking services. I did. This will enable financial institutions to conduct transactions more efficiently, securely and transparently, the bank said in an announcement on Friday.
DBS Token Services leverages a permissioned blockchain compatible with the Ethereum virtual machine to enable instant, real-time payment settlement 24/7. This eliminates the need for intermediaries and significantly reduces transaction times. Additionally, smart contracts allow financial institutions to manage the use of funds programmatically, providing greater control and automation.
“To capture the profound shift in human and business activity towards on-demand digital services, enterprises and the public sector are rethinking their operating models and customer engagement strategies. To support this change and transformation, , a new generation of ‘always on’ banking services is essential,” explained Mr Lim Soon Chong, Head of Global Transaction Services at DBS Group.
One of the key features of DBS Token Services is Treasury Tokens, a solution that allows large companies to instantly settle intra-group transactions in multiple currencies. This is a significant improvement over traditional banking systems, which often involve currency cut-off timings and after-hours banking hours. This solution currently supports ongoing intra-group transfers within Ant International.
Other features include conditional payments, which allow financial institutions to program conditions that govern the disbursement of funds, and programmable rewards, which allow financial institutions to create digital voucher programs for their customers.
Other features include conditional payments, which allow financial institutions to program conditions that govern the disbursement of funds, and programmable rewards, which allow financial institutions to create digital voucher programs for their customers. DBS Hong Kong is currently participating in the Hong Kong Monetary Authority’s e-HKD pilot program and is exploring the use of programmable benefits to enhance its ESG incentive program.
DBS said the token service is the culmination of several years of research and development and marks an important milestone in the bank’s efforts to implement blockchain technology. The platform is expected to have a major impact on the financial industry as it provides financial institutions with a more efficient, secure and transparent way to transact.
Last month, the bank announced that it would launch over-the-counter crypto options trading and structured notes for qualified institutional investors and accredited asset clients starting in the fourth quarter of 2024.
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