Singapore bank DBS has launched a pilot of its treasury and liquid management solution alongside Ant International to harness the capabilities of tokenised assets.
DBS Treasury Tokens seeks to become a next-generation solution to offer multi-currency and liquidity management solutions across the bank’s permissioned blockchain for multiple markets.
The blockchain solution will be integrated with Ant International’s Whale platform. This will enable the fintech to manage its intra-group liquidity to optimise workflow and visibility, as well as uncovering new opportunities within cross-border payments.
Kelvin Li, Head of Platform Tech of Ant International, said: “This milestone with DBS is an important step forward in addressing challenges like reducing costs and transaction risks for cross-border payments.
“We have already seen successful use cases on our Whale platform in areas such as instant tax refund services and SME cross-border payments, and we will continue working together with industry partners and leveraging blockchain technology to enable more open and inclusive cross-border payments.”
Settlements using DBS Treasury Tokens look to reduce transaction times from days to seconds, whilst also aiming to improve working capital and greater overall control over companies, such as Ant International, over cash flow.
The new blockchain network developed by DBS is Ethereum Virtual Machine-compatible, making it a seamless integration into many core payments engines.
This latest solution by DBS is indicative of banks and financial service’s exploration into blockchain technology and tokenisation, continually seeking new benefits for transparent and seamless programmes.
Lim Soon Chong, Group Head of Global Transaction Services at DBS Bank, added: “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.
“DBS Treasury Tokens and our partnership with Ant International demonstrates how corporates can seize such opportunities with full confidence that their liquidity management capabilities can scale in tandem.
“DBS’ permissioned blockchain also forms the building block for new efficiencies and capabilities in traditional banking services, such as programmable, fractionalised and atomic value transfer.”
