DBS launches blockchain-powered Treasury Tokens pilot with Ant International for 24/7 treasury and liquidity management
Singapore.13 Aug 2024
DBS Treasury Tokens is a new token-based innovation resulting from a collaboration between DBS and Ant International
The digital form factor enables more efficient treasury and liquidity management for Ant International entities across multiple markets
The solution is powered by DBS’ permissioned blockchain, which is integrated with its core payments engine to unlock banking efficiencies
Singapore, 13 Aug 2024 - DBS today announced the pilot launch of DBS Treasury Tokens, a next-generation treasury and liquidity management solution, in collaboration with Ant International. Ant International will be able to use the digital form factor to achieve instant, multi-currency treasury and liquidity management on DBS’ permissioned blockchain for their entities across multiple markets.
In addition, DBS’ permissioned blockchain is integrated with Ant International’s Whale platform, enabling Ant International to seamlessly manage their intragroup liquidity on a 24/7 basis, thereby optimising workflow and visibility.
Ant International’s Whale platform is its next-generation treasury management solution that utilises blockchain technology, advanced encryption and artificial intelligence to improve the efficiency and transparency of fund movements between bank accounts.
Kelvin Li, Head of Platform Tech, 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.”
Large corporates like Ant International which operate several entities across multiple markets need to manage payments, collections, funding needs and cash positions across time-zones and currencies. DBS Treasury Tokens enables Ant International to reduce the settlement of intra-group transactions from potentially days to seconds. This optimises intra-group liquidity and working capital, providing corporate treasurers with greater visibility, predictability and control over the entire group’s cash position.
Lim Soon Chong, Group Head of Global Transaction Services, DBS Bank, said: “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.”
DBS’ permissioned blockchain is Ethereum virtual machine (EVM)-compatible and is integrated with its core payments engine. This greatly enhances extensibility and interoperability with multiple industry payment infrastructures that DBS is involved in. This successful product launch by DBS demonstrates how established commercial banks and financial institutions can harness blockchain technology and smart contracts to deliver the next generation of banking services on a 24/7, atomic, and programmable basis.
DBS Treasury Tokens stems from the learnings and systems developed from the bank’s multi-year participation in the Monetary Authority of Singapore (MAS)-led Project Orchid[1] and Project Guardian[2] to test the benefits of tokenisation. The solution is one of the industry applications tested under Project Guardian. Since 2016, the bank has piloted transactions involving Purpose Bound Money, institutional-grade financial protocols, as well as atomic settlement use cases with tokenised bank deposits and tokenised securities.
Ant International is also actively involved in Project Guardian, having developed a treasury management solution that will enable real-time multi-currency clearing and settlement, supporting over 40 currencies.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
In addition, DBS’ permissioned blockchain is integrated with Ant International’s Whale platform, enabling Ant International to seamlessly manage their intragroup liquidity on a 24/7 basis, thereby optimising workflow and visibility.
Ant International’s Whale platform is its next-generation treasury management solution that utilises blockchain technology, advanced encryption and artificial intelligence to improve the efficiency and transparency of fund movements between bank accounts.
Kelvin Li, Head of Platform Tech, 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.”
Large corporates like Ant International which operate several entities across multiple markets need to manage payments, collections, funding needs and cash positions across time-zones and currencies. DBS Treasury Tokens enables Ant International to reduce the settlement of intra-group transactions from potentially days to seconds. This optimises intra-group liquidity and working capital, providing corporate treasurers with greater visibility, predictability and control over the entire group’s cash position.
Lim Soon Chong, Group Head of Global Transaction Services, DBS Bank, said: “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.”
DBS’ permissioned blockchain is Ethereum virtual machine (EVM)-compatible and is integrated with its core payments engine. This greatly enhances extensibility and interoperability with multiple industry payment infrastructures that DBS is involved in. This successful product launch by DBS demonstrates how established commercial banks and financial institutions can harness blockchain technology and smart contracts to deliver the next generation of banking services on a 24/7, atomic, and programmable basis.
DBS Treasury Tokens stems from the learnings and systems developed from the bank’s multi-year participation in the Monetary Authority of Singapore (MAS)-led Project Orchid[1] and Project Guardian[2] to test the benefits of tokenisation. The solution is one of the industry applications tested under Project Guardian. Since 2016, the bank has piloted transactions involving Purpose Bound Money, institutional-grade financial protocols, as well as atomic settlement use cases with tokenised bank deposits and tokenised securities.
Ant International is also actively involved in Project Guardian, having developed a treasury management solution that will enable real-time multi-currency clearing and settlement, supporting over 40 currencies.
[1] Project Orchid is a multi-year, multi-phase project which aims to develop the technology infrastructure and technical competencies necessary for a digital Singapore dollar.
[2] Project Guardian is a collaborative initiative between policymakers and the financial industry to enhance liquidity and efficiency of financial markets through asset tokenisation.
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
