DBS unveils blockchain solution for streamlined government grant disbursement

Singaporean banking giant DBS has introduced a blockchain-powered solution that uses smart contracts to streamline the distribution of government grants.

According to local media, DBS completed the pilot in collaboration with Enterprise Singapore and Singapore Fintech Association.

As part of the pilot, 27 local fintech companies received grants from the SFA using a permissioned blockchain developed by DBS. Permissioned blockchains are partially decentralized and restrict who can participate in the network. Unlike public blockchains, permissioned blockchains require participants to be approved in advance.

DBS’s permissioned blockchain allows ESG and SFA to set conditions for grant programs, ensuring only approved beneficiaries receive grants.

Smart contracts verify these pre-determined conditions and grants are automatically distributed when the conditions are met. DBS adds that the solution therefore reduces the need for manual intervention and allows beneficiaries to receive cash payments much faster.

DBS said the pilot was carried out to demonstrate how programmable grants can increase the transparency and efficiency of grant distributions.

Han Kwee Juan, Country Head of DBS Singapore, expects the new solution to “expand to more use cases, including milestone-based project payments, consumer rewards and more.”

DBS also plans to explore more applications for the solution with more government agencies as part of Project Orchid. The Monetary Authority of Singapore launched its multi-year digital currency initiative last year to explore various use cases for digital money.

DBS pioneers blockchain innovation

Among other initiatives, DBS recently launched a blockchain-based pilot project to enhance cross-border treasury and liquidity management in partnership with Ant International. The DBS Treasury Tokens project also leverages DBS’ permissioned blockchain to support multi-currency treasury operations for Ant International, the company behind the Alipay+ mobile payment service.

Alongside its tokenization efforts, DBS has also been making progress in the crypto space. In July, the bank became a custody partner for Paxos, a New York-based stablecoin issuer. In February, DBS expanded its services to offer crypto solutions to clients in Hong Kong.