Singapore’s DBS is partnering with Ant International on a blockchain-based tokenization project aimed at enhancing intra-group treasury and liquidity management around the clock.
The pilot program will utilize digital Treasury Tokens to facilitate instant, multi-currency treasury and liquidity management on DBS’s permissioned blockchain across various markets. This blockchain is seamlessly integrated with Ant International’s advanced treasury management Whale platform, allowing the Chinese conglomerate to manage intra-group liquidity continuously.
Kelvin Li, head of platform technology at Ant International, stated, “This milestone with DBS marks a significant advance in tackling challenges such as reducing costs and transaction risks associated with cross-border payments. We have observed successful applications on our Whale platform in instant tax refund services and SME cross-border payments, and we will continue collaborating with industry partners to leverage blockchain technology for more accessible cross-border payment solutions.”
Li emphasized that DBS Treasury Tokens can shorten the settlement period for intra-group transactions from potentially days to mere seconds, thus optimizing intra-group liquidity and working capital by enhancing visibility, predictability, and control over the overall cash position of the group.
Lim Soon Chong, group head of Global Transaction Services at DBS Bank, remarked, “This new capability aligns with the evolving treasury needs of businesses in response to the growth of e-commerce and on-demand services available 24/7. The DBS Treasury Tokens and our collaboration with Ant International illustrate how corporations can confidently capitalize on these opportunities, ensuring that their liquidity management capabilities will expand accordingly. Additionally, DBS’s permissioned blockchain serves as a foundation for new efficiencies and functionalities in traditional banking, including programmable, fractionalized, and atomic value transfer.”
DBS Treasury Tokens originate from the bank’s long-term involvement in the Monetary Authority of Singapore (MAS)-led initiatives, Project Orchid and Project Guardian, which explored the benefits of tokenization. Through these projects, the bank has piloted transactions involving Purpose Bound Money, institutional-grade financial protocols, and atomic settlement use cases with tokenized bank deposits and securities.