Singapore’s DBS Bank has successfully completed a pilot project utilizing blockchain technology for programmable disbursements of government grants to businesses. The pilot, carried out in collaboration with Enterprise Singapore and the country’s fintech association, involved programmable payments to 27 local fintech companies.
Through DBS’s permissioned blockchain, government agencies were able to set specific conditions for grant disbursements, such as ensuring that funds were only allocated to approved recipients and contingent upon meeting certain business criteria. Once the conditions were verified via smart contracts, the grants were automatically disbursed in cash.
This approach significantly improved governance controls and minimized the need for manual cash handling, allowing businesses to receive government payouts more quickly, according to DBS. The transparency offered by the bank’s permissioned blockchain also provided full visibility of the entire process.
Han Kwee Juan, country head of DBS Singapore, stated: “This pilot for programmable grant disbursements introduces a novel payment mechanism that draws on insights from our Purpose Bound Money initiatives and marks a crucial step in the industrialization of blockchain technology. The use of smart contract technology not only automates but also streamlines grant disbursements for government agencies, facilitating faster and more secure payments.”
He further indicated a vision for expanding this payment innovation to encompass additional use cases, including milestone-based project payments and consumer rewards.