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DBS Bank in Singapore is launching blockchain-based services for its big business customers, including DBS Token Services for faster payment settlements. Utilising a permissioned blockchain, the bank can control the services while also benefiting from blockchain technology. The bank plans to use smart contracts to manage funds, increasing security and transparency. It is also exploring other ways blockchain can improve its services and plans to launch over-the-counter crypto trading options and structured notes for institutional investors.

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DBS Bank in Singapore has rolled out a set of blockchain-based services for its big business customers. The bank has launched DBS Token Services, which allows lightning-fast payment settlements via its approved blockchain.

A permissioned blockchain is a network with a control layer that only lets participants play around within a certain level of authority granted to them. It uses distributed ledger technology, but it’s not entirely free wheeling and decentralized. DBS had already displayed the potential of its Ethereum Virtual Machine (EVM) compatible permissions chain when it displayed its blockchain-backed treasury tokens model in August.

The bank is planning to use smart contracts to manage funds. These have pre-set conditions that ramp up security and transparency. The bank can fully control the services thanks to the permissioned blockchain. It, therefore, gets the best from blockchain technology, while still playing by the rules.

According to Lim Soon Chong, who’s in charge of global transaction services at DBS Bank, new kind of “always on” banking services are crucial as more and more people demand digital services. Companies and public sector bodies are re-thinking how they work and interact with others.

Chong feels that tokenization and smart contracts enable DBS Token Services to manage cash flow better and make operational processes quicker for its clients. This also creates exciting opportunities for engagement with end-customers and end-users, making businesses stronger.

This progress speaks volumes about how traditional banks can use blockchain technology to offer new services to their clients. DBS is broadening its scope of blockchain-backed features. On top of the token services and treasury tokens model, DBS has also announced other blockchain-linked plans for 2024.

In August, the bank revealed a test run for blockchain-based government grants, which it says improves governance control and does away with the manual handling of cash. Then in September, the bank announced plans to launch over-the-counter (OTC) crypto trading options and structured notes for institutional investors. It’s set to offer products linked with Bitcoin (BTC) and Ether (ETH) prices.

Source: Cointelegraph