In a recent announcement, the Development Bank of Singapore Ltd (DBS) revealed plans to launch the DBS Token Service, an innovative blockchain-powered banking solution for institutions.
Per the press release making rounds, the service aims to help institutions unlock instant, round-the-clock settlements of payments in real time. DBS noted it will leverage the bank's permissioned blockchain to achieve its latest innovation goal.
How DBS Aims to Redefine the Payment System Via Permissions Blockchains
Noteworthily, permissioned blockchains are networks equipped with an access layer that assigns participants predefined, specific layers of authority. Consequently, leveraging this system, the bank disclosed that its Smart Contracts would help institutions govern funds under predetermined conditions. This invention will significantly improve security and transparency.
“Using a permissioned blockchain provides DBS full control over these services, enabling the bank to harness the benefits of blockchain technology while adhering to compliance standards.” DBS wrote.
According to Lim Soon Chong, DBS group head of global transaction services, this new generation of "always on" banking services is crucial for increasing the demand for digital services.
He noted that tokenization and Smart Contracts will allow DBS token services to enhance liquidity management and optimize operational workflow for the company's clients. Furthermore, they create new opportunities for these institutions and strengthen their business resilience.
Nonetheless, it is necessary to understand that although these blockchains leverage distributed ledger innovation, they are not entirely decentralized.
Previous Innovations
Before its latest invention, the bank also had announced other blockchain-related developments earlier this year, underscoring its commitment to revolutionizing the payment system.
On August 22, DBS Bank unveiled a pilot program for blockchain-based government grants. According to DBS, the solution aims to improve governance control and minimize the need for manual cash processing.
Furthermore, in the month that just concluded, particularly on October 17, DBS announced plans to introduce over-the-counter (OTC) crypto options trading and structured notes for institutional investors.
