DBS Bank to Launch Blockchain-based Treasury for Liquidity Solutions

DBS Bank, a Singapore-based financial services company, has initiated the pilot of blockchain-powered token treasuries with Ant International. The proposed initiative aims to provide liquidity management solutions to linked payment giants. The financial payment solution company Ant International will utilize the bank’s permissioned blockchain to manage and improve the liquidity of multi-currency treasuries across multiple markets.

DBS Bank to Utilize Permissioned Blockchain for Treasuries Token

On August 13, DBS announced the launch of its pilot project in integration with Ant International’s platform Whale. Whale is a treasury management platform that uses blockchain technology, AI, and advanced encryption methods to manage liquidity 24/7. The new token treasuries will exist on DBS’s permissioned blockchain (a private blockchain) to provide payment solutions to the bank’s partner entities.

Permissioned blockchains are compatible with Ethereum Virtual Machine (EVM) with an extra access control layer. This security mechanism allows only specific participants, approved by authority, to interact with the blockchain. Before joining the network for transactions or any other purpose, users have to be authorized by network owners. Unlike other blockchains, permissioned blockchain is not entirely decentralized and utilizes distributed ledger technology (DLT).

According to DBS, permissioned blockchain is integrated with the bank’s core payment engine, which this introduced pilot will use to enhance the system’s extensibility and interoperability. Similarly, this development will benefit multiple payment organizations linked with DBS.

Moreover, the proposed token treasuries will reduce transaction settlement time from days to seconds, making digital asset services smooth and efficient among financial giants. Additionally, the use of blockchain technology will ensure transparency and efficiency of fund transfers between such payment firms.

DBS and Ant International Advocate Blockchain Token Treasury

DBS’s Head of global transaction services, Lim Soon Chong, addressed the increased demand for digital treasuries citing the state’s surge of e-commerce and on-demand financial services.

While commenting on the pilot of token treasuries, he noted in a statement:

DBS Treasury Tokens and our partnership with Ant International demonstrate how corporates can seize such opportunities with full confidence that their liquidity management capabilities can scale in tandem. DBS’ permissioned blockchain also forms the building block for new efficiencies and capabilities in traditional banking services, such as programmable, fractionalized, and atomic value transfer.

Meanwhile, the Head of Ant International, Kevin Li, added that this is a significant milestone for the Whale platform, which has progressed in challenges associated with cross-border payments and high-cost transactions. He continued that by harnessing blockchain technology, the platform aims to establish a simple and easily accessible payment system.

Singapore’s Financial Firms Pushing Blockchain Initiatives

DBS Bank’s token treasury launch results from learnings and system development from two initiatives led by the Monetary Authority of Singapore (MAS): Project Orchid and Project Guardian. In Project Guardian, financial regulators and payment firms collaborated to explore ways of tokenizing assets to scale up liquidity. DBS token treasury is now in the testing phase under Project Guardian.

It’s not the first time that Singapore’s financial giant, DBS, has embraced blockchain technology. In July 2024, DBS announced that the bank looks forward to partnering with stablecoin issuers if they meet regulatory standards set by legal authorities. DBS also argued that stablecoins make payment settlements faster, smoother, and cheaper.