DBS Bank has introduced DBS Token Services, a new blockchain-based offering designed to streamline institutional banking processes.
The DBS Token Services will integrate the bank’s Ethereum (ETH) Virtual Machine-compatible permissioned blockchain, its core payment engine, and multiple industry payment infrastructures, according to a press release from DBS.
Real-time payments via the blockchain
Smart contracts enable institutions to program the governance of funds, including Treasury Tokens, Conditional Payments, and Programmable Rewards. This switch will allow real-time payment settlements using a permissioned blockchain, a system where only authorized participants can interact.
For those unfamiliar with the technology, tokenization in finance refers to turning assets into digital tokens that can be traded or managed more efficiently. Smart contracts are self-executing agreements that automatically enforce the terms of a contract, adding security and transparency to transactions.
By doing this, DBS aims to provide a more efficient and secure banking experience for institutions.
This launch follows DBS’s previous blockchain experiments, including a treasury token pilot and blockchain-based government grants.
The bank is also expanding into crypto options trading, signaling its broader commitment to blockchain and digital assets.
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