Singapore-based DBS Bank has announced the pilot launch of DBS Treasury Tokens, a new blockchain-based treasury and liquidity management solution developed in collaboration with Ant International.
The solution, powered by DBS’s permissioned blockchain, is designed to improve the efficiency and speed of multi-currency treasury operations for Ant International entities across various markets.
Blockchain Solution
DBS Treasury Tokens enable Ant International to seamlessly manage its liquidity across multiple currencies. The integration of DBS’s permissioned blockchain with Ant International’s Whale platform enables seamless intra-group liquidity management, aiming to optimize workflow and improve financial visibility across the organization.
Ant International’s Whale platform integrates blockchain technology, advanced encryption and AI into its treasury management system. The collaboration with DBS marks a step forward in solving cross-border payment challenges, including reducing transaction costs and risks, according to Kelvin Li, head of platform technology at Ant International.
DBS Treasury Tokens are particularly relevant for large companies like Ant International, which operate across multiple markets and time zones. The tokens are intended to reduce the settlement time for intra-group transactions, potentially from days to seconds, and improve liquidity and working capital management.
Lim Soon Chong, Group Head of Global Transaction Services at DBS Bank, noted that the introduction of DBS Cash Tokens aligns with evolving business needs, particularly in response to the growth of e-commerce and on-demand services.
The solution is part of DBS’s broader efforts to leverage blockchain technology to enhance traditional banking services, including in areas such as programmable and fractional value transfer.
The DBS permissioned blockchain, which is compatible with the Ethereum Virtual Machine (EVM), is integrated into the bank’s core payment engine. This configuration aims to improve the system’s compatibility with various payment infrastructures in the industry.
Guardian Project
The development of DBS Treasury Tokens builds on the bank’s participation in the Monetary Authority of Singapore’s (MAS) Project Orchid and Project Guardian, both of which are exploring the use of tokenisation in financial services.
Ant International is also involved in the Guardian project and has developed a treasury management solution that supports real-time multi-currency clearing and settlement, encompassing more than 40 currencies.
Project Guardian is a collaborative initiative led by the Monetary Authority of Singapore (MAS) to explore the potential of asset tokenization and DeFi to improve the efficiency and liquidity of financial markets.
Launched in 2022, the project brings together policy makers, financial institutions and industry stakeholders to test and develop use cases for digital assets in a regulated environment.
