DBS Bank Launches Blockchain-Powered Treasury Tokens Pilot with Ant International
Singapore’s largest bank, DBS, has announced the pilot launch of DBS Treasury Tokens, a blockchain-based solution for next-generation treasury and liquidity management, in collaboration with Ant International. This innovative project aims to revolutionize how large corporations handle their multi-currency treasury operations across various markets.
The DBS Treasury Tokens operate on the bank’s permissioned blockchain, which is Ethereum Virtual Machine (EVM) compatible and integrated with DBS’s core payments engine. This integration enhances the system’s interoperability with various industry payment infrastructures, allowing for seamless, 24/7 management of intragroup liquidity.
Ant International, the international division of Alibaba’s fintech affiliate Ant Group, will utilize this digital platform to manage its treasury operations instantly across multiple markets. The blockchain system is integrated with Ant’s Whale platform, which leverages advanced encryption and artificial intelligence to improve the efficiency and transparency of fund movements between bank accounts.
Kelvin Li, Head of Platform Tech at Ant International, highlighted the significance of this collaboration, stating, “This milestone with DBS is an important step forward in addressing challenges like reducing costs and transaction risks for cross-border payments.” Li also mentioned successful use cases on their Whale platform, including instant tax refund services and SME cross-border payments.
The DBS Treasury Tokens aim to address the complex needs of large corporations operating across multiple markets. By reducing the settlement time for intra-group transactions from days to seconds, the solution optimizes liquidity and working capital while offering corporate treasurers improved control and predictability over cash positions.
Lim Soon Chong, Group Head of Global Transaction Services at DBS Bank, emphasized the timeliness of this innovation, saying, “This new capability comes at a time when the treasury needs of businesses are evolving to meet the rise of e-commerce and on-demand services on a 24/7 basis.”
The development of DBS Treasury Tokens builds upon the bank’s participation in the Monetary Authority of Singapore-led initiatives, Project Orchid and Project Guardian, which explore the benefits of tokenization in financial services. Ant International is also actively involved in Project Guardian, focusing on real-time multi-currency clearing and settlement across over 40 currencies.
This pilot launch demonstrates how established financial institutions can harness blockchain technology to offer advanced, round-the-clock banking services. As the financial landscape continues to evolve, innovations like the DBS Treasury Tokens are poised to play a crucial role in shaping the future of corporate treasury management and cross-border payments.
