- DBS launches treasury tokens with Ant International for enhanced liquidity management.
- Kelvin Li emphasized the importance of addressing cross-border payment challenges.
DBS Bank, Singapore’s largest bank by assets, initiated a pilot project for its new “DBS Treasury Tokens” collaborating with Ant International, a global fintech of Alibaba’s Ant Group. This initiative aims to revolutionize treasury and liquidity management for multinational corporations.
The DBS Treasury Tokens, which operate on DBS’s permissioned blockchain, are designed to enhance multiple currency treasury operations for Ant International. The blockchain integrated with Ant’s Whale treasury management system facilitates instant and seamless management of intra-group liquidity.
Lim Soon Chong, DBS’s Group Head of Global Transaction Services, highlighted that this development indicates the evolving needs of businesses, driven by the rise of e-commerce and 24/7 services.
Chong stated:
“DBS Treasury Tokens and our partnership with Ant International demonstrate how corporates can scale their liquidity management capabilities effectively”.
In addition, the permissioned blockchain is compatible with the Ethereum Virtual Machine (EVM). EVM enhances interoperability with other industry payment infrastructures. It supports programmable, fractionalized, and atomic value transfers. This capability enables traditional banking services to evolve and offer more efficient solutions.
Blockchain’s Role in Revolutionizing Treasury Tokens
Kelvin Li, Head of Platform Tech at Ant International, emphasized:
“We have already seen successful use cases on our Whale platform in areas such as instant tax refunds and SME cross-border payments”.
He noted that the pilot project is a significant step toward reducing costs and transaction risks associated with cross-border payments.
Further, the pilot depends on DBS’s involvement in Singapore’s Monetary Authority-led initiatives like Project Orchid, and Project Guardian to explore the benefits of tokenization. These projects aim to test the potential of blockchain technology for real-time multi-currency clearing and settlement.
Besides, the integration of DBS Treasury Tokens and Ant International’s Whale platform showcases the transformation of blockchain in banking. Moreover, this collaboration highlights the role of blockchain in advancing financial services and meeting the demands of modern businesses.
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