Digital payment operator Ant International and DBS Bank developed a blockchain-based treasury and liquidity management system to enhance financial services.
The pilot program boosts liquidity management by introducing DBS Treasury Tokens on an EVM-compatible, permissioned blockchain across various markets.
A new blockchain-based treasury and liquidity management system was developed in partnership between digital payment operator Ant International and multinational banking and financial services firm DBS Bank.
Ant International will employ DBS Treasury Tokens for instantaneous, multicurrency treasury and liquidity management, as DBS Bank stated on August 13th.
Ant International intends to utilize the DBS Treasury Tokens available on DBS’s permissioned blockchain for its various market companies.
DBS Bank integrates permissioned blockchain compatible with EVM.
Networks with an access control layer are known as “private blockchains” or permissioned blockchains. This provides a security feature that restricts the amount of pre-approved authority that participants on the blockchain can have. A user must obtain authorization from the network owner to join a network. Permissioned blockchains are only partly decentralized despite utilizing distributed ledger technology (DLT).
DBS claims its permissioned blockchain is connected with the bank’s main payments engine and compatible with the Ethereum Virtual Machine (EVM). This enhancement makes the solution more extensible and compatible with a broader range of DBS-connected industrial payment infrastructures.
The Singapore-based bank added that the blockchain has been connected with Ant International’s Whale treasury management platform. This enables uninterrupted intragroup liquidity management for the business, which DBS says improves productivity and visibility.
The Ant’s Whale platform leverages encryption, artificial intelligence, and blockchain technology to improve the efficiency and transparency of money transfers between bank accounts.
Evaluating the advantages of tokenization
The release stated that the Monetary Authority of Singapore’s (MAS) Project Orchid and Project Guardian, which examine the advantages of tokenization, is being applied by the corporation in the DBS Treasury Tokens project.
DBS claims that one of the applications being explored as part of Project Guardian is its Treasury Tokens.
According to Lim Soon Chong, group head of global transaction services at DBS Bank, the new project is filling a critical gap brought on by the growth of e-commerce and on-demand services. The manager stated:
“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.”
The executive said that new capabilities and efficiency in traditional banking services, such as “programmable, fractionalized and atomic value transfer,” are made possible by DBS’ permissioned blockchain.
