Key Insights
- DBS partners with Ant International to launch blockchain-based treasury tokens, optimizing cross-border liquidity management for global markets.
- The pilot project reduces settlement times for intra-group transactions, significantly improving liquidity management across different time zones and currencies.
- DBS’s permissioned blockchain integrates with Ant International’s Whale platform, offering 24/7 liquidity management and advanced financial protocols.
DBS Group, a leading financial services provider, has embarked on a blockchain-based pilot project in partnership with Ant International. The initiative, announced on August 13, aims to revolutionize cross-border treasury and liquidity management through the implementation of DBS Treasury Tokens.
The project leverages DBS’s permissioned blockchain, which is Ethereum Virtual Machine (EVM)-compatible, to facilitate multi-currency treasury operations for Ant International, a key player in the global payments space with its mobile payment service.
Reducing Transaction Risks and Costs
The pilot addresses critical challenges in cross-border payments, including cost reduction and transaction risk mitigation. Kelvin Li, Ant International’s head of platform technology, highlighted that the collaboration with DBS is designed to optimize liquidity management across various global markets. The implementation of the treasury token is expected to reduce settlement times for intra-group transactions, shrinking the process from potentially days to mere seconds.
Optimizing Intra-Group Liquidity
The new DBS Treasury Tokens offer significant advantages for large corporations like Ant International, which operates multiple entities across different markets. The tokens enable these entities to manage payments, collections, funding needs, and cash positions across different time zones and currencies. By reducing settlement times, the pilot aims to optimize intra-group liquidity and working capital, giving corporate treasurers greater visibility and control over their financial operations.
Integrating Blockchain with Core Payments
DBS’s permissioned blockchain, which is integrated with Ant International’s Whale platform, enhances the ability to manage intra-group liquidity on a 24/7 basis. This integration not only improves workflow and visibility but also demonstrates how blockchain technology and smart contracts can be harnessed to deliver next-generation banking services that are atomic, programmable, and available around the clock.
The DBS Treasury Tokens initiative is an extension of the bank’s multi-year participation in the Monetary Authority of Singapore (MAS)-led Project Orchid and Project Guardian. These projects have been instrumental in testing the benefits of tokenization, leading to the development of advanced financial protocols and atomic settlement use cases involving tokenized bank deposits and securities.
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