Singapore-based DBS Bank has done just that announced the pilot launch of DBS Treasury Tokens, a new blockchain-based treasury and liquidity management solution developed in partnership with Ant International.
The solution, powered by DBS’s permissioned blockchain, is designed to improve the efficiency and speed of multi-currency treasury operations for Ant International’s entities in various markets.
Blockchain solution
DBS Treasury Tokens allow Ant International to continuously manage liquidity in multiple currencies. The integration of DBS’s sanctioned blockchain with Ant International’s Whale platform enables seamless liquidity management across the group, aimed at optimizing workflow and improving financial visibility across the organization.
Ant International’s Whale platform integrates blockchain technology, advanced encryption and AI into its treasury management system. According to Kelvin Li, Head of Platform Tech at Ant International, the partnership with DBS marks progress in addressing challenges associated with cross-border payments, including reducing costs and transaction risks.
The DBS Treasury Tokens are particularly relevant for large companies such as Ant International, which operate in multiple markets and time zones. The tokens are intended to reduce settlement time for intra-group transactions, potentially from days to seconds, and improve liquidity and working capital management.
Lim Soon Chong, Group Head of Global Transaction Services at DBS Bank, noted that the introduction of DBS Treasury Tokens is in line with changing business needs, especially in response to the growth of e-commerce and on-demand services.
The solution is part of DBS’ broader efforts to use blockchain technology to enhance traditional banking services, including in areas such as programmable and fractional value transfer.
The DBS-approved blockchain, which is compatible with the Ethereum virtual machine (EVM), is integrated with the bank’s core payment engine. This setup aims to improve the compatibility of the system with various payment infrastructures in the sector.
Project monitor
The development of DBS Treasury Tokens is based on the bank’s participation in the Monetary Authority of Singapore’s (MAS) Project Orchid and Project Guardian, both of which explore the use of tokenization in financial services.
Ant International is also involved in Project Guardian and has developed a treasury management solution that supports real-time clearing and settlement of multiple currencies, covering more than 40 currencies.
Project Guardian is a collaborative initiative led by the Monetary Authority of Singapore (MAS) aimed at exploring the potential of asset tokenization and DeFi in improving the efficiency and liquidity of financial markets.
Launched in 2022, the project will bring together policymakers, financial institutions and industry players to test and develop use cases for digital assets within a regulated environment.