DBS Bank rolls out new ‘Token Services’ for blockchain banking

DBS Bank has introduced DBS Token Services, a new blockchain-based offering designed to streamline corporate banking processes.

According to a press release from DBS, DBS Token Services will integrate the bank’s Ethereum (ETH) Virtual Machine-compatible permissioned blockchain, core payment engine and multi-industry payment infrastructures.

Real-time payments via blockchain

Smart contracts enable institutions to program the management of funds, including Treasury Tokens, Conditional Payments, and Programmable Rewards. This key will enable real-time payment settlements using a permissioned blockchain, a system that only authorized participants can interact with.

NOW: 🇸🇬 Singapore’s largest bank DBS is launching token services to enable blockchain-based banking.

— Watcher.Guru (@WatcherGuru) 18 October 2024

For those unfamiliar with the technology, tokenization in finance refers to the conversion of assets into digital tokens that can be bought, sold, 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 institutions with a more efficient and secure banking experience.

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 commitment to blockchain and digital assets.