By Sharan Kaur Phillora
DBS Bank, Singapore’s largest financial institution, has launched a groundbreaking pilot program for blockchain-enabled treasury tokens in collaboration with Ant International. This initiative, known as “DBS Treasury Tokens,” aims to transform treasury and liquidity management by leveraging the capabilities of blockchain technology.
Here’s what we know:
The pilot operates on DBS’s permissioned blockchain, which is compatible with the Ethereum Virtual Machine (EVM), enhancing the system’s flexibility and interoperability with various industry payment infrastructures.
The primary objective of the pilot is to significantly reduce the settlement time for intra-group transactions from days to mere seconds. This advancement is expected to optimize liquidity and working capital management for Ant International, providing corporate treasurers with improved visibility, predictability, and control over cash positions across different entities.
The integration of blockchain technology with Ant International’s Whale platform, a next-generation treasury management solution, facilitates intragroup liquidity management on a 24/7 basis. The Whale platform utilizes advanced encryption and artificial intelligence to enhance the efficiency and transparency of fund transfers between bank accounts.
Ant International, a subsidiary of Ant Group and the parent of Alipay+, will use the digital form factor to achieve instant, multi-currency treasury and liquidity management across multiple markets. This collaboration is part of DBS’s broader involvement in Singapore’s Project Orchid and Project Guardian, initiatives led by the Monetary Authority of Singapore to explore the benefits of tokenization.
The launch of the DBS Treasury Tokens pilot reflects a growing trend among financial institutions to adopt blockchain technology for enhanced operational efficiency. By enabling programmable, fractionalized, and atomic value transfers, DBS’s permissioned blockchain is set to pave the way for new capabilities in traditional banking services.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
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