SINGAPORE – DBS Bank, one of Singapore’s largest financial institutions, has introduced a new suite of blockchain-powered services for its institutional clients, marking a significant step in its use of digital technologies. The new initiative, titled “DBS Token Services,” enables real-time payment settlements using the bank’s own permissioned blockchain—a network that allows controlled access to participants while leveraging distributed ledger technology.
Unlike fully decentralized blockchains, permissioned blockchains grant pre-approved authority to participants, ensuring a balance between innovation and compliance. This new blockchain infrastructure aims to bring the bank’s institutional clients into the digital age, particularly as demand for digital services rises.
The bank first unveiled its blockchain-powered treasury tokens pilot on August 13, showcasing its Ethereum Virtual Machine (EVM)-compatible permissioned blockchain. In this pilot, DBS highlighted the use of smart contracts—self-executing contracts with the terms directly written into code—to provide secure and transparent governance over funds with predefined conditions.
In announcing the launch of DBS Token Services, Lim Soon Chong, group head of global transaction services at DBS, underscored the need for a new era of “always on” banking services. According to Lim, companies and public sector organizations are already transforming their operations and engagement strategies to align with digital trends. He emphasized that the tokenization of assets and the use of smart contracts allow DBS Token Services to optimize liquidity management, streamline operations, and enhance business resilience.
“These technologies unlock new opportunities for end-user engagement,” Lim said, adding that the development represents a milestone for transaction banking. It demonstrates how traditional financial institutions like DBS can effectively integrate blockchain into their service offerings while maintaining regulatory compliance.
The introduction of DBS Token Services comes amidst a broader blockchain push by the bank. In August 2024, DBS announced a blockchain-based pilot for government grants, which the bank claims will enhance governance controls and reduce the need for manual cash handling processes.
Additionally, in September, DBS revealed plans to launch over-the-counter (OTC) crypto options trading and structured notes tailored to institutional investors. These products will focus on cryptocurrency prices, specifically Bitcoin (BTC) and Ether (ETH), broadening the bank’s involvement in the crypto-financial ecosystem.
The series of blockchain initiatives marks DBS Bank’s commitment to harnessing emerging technologies in a way that meets both institutional client needs and the bank’s regulatory obligations. As digital transformation reshapes the financial services landscape, DBS is positioning itself at the forefront of this evolution, integrating the security and transparency of blockchain into its next-generation banking services.
