Singapore-headquartered DBS has introduced a new suite of banking services which integrate tokenisation and smart contract-enabled capabilities with its banking services.

DBS Token Services aims to provide new transaction banking capabilities and operating efficiencies for its institutional clients.

The new service provides real-time settlement of payments by integrating the bank's Ethereum Virtual Machine-compatible permissioned blockchain with its core payment engine and multiple industry payment infrastructures.

DBS explained that smart contracts enable programmability for institutions to govern the use of funds which enhances security and transparency.

The bank said it maintains full control over these services through the blockchain, meaning they meet compliance standards.

The service is the culmination of several years of industry collaboration and experimentation in digital money innovations including treasury tokens, conditional payments, and programmable rewards.

The launch comes after Citi last week went live with a set of “next-generation” banking services powered by distributed ledger technology (DLT) and smart contracts.

Citi Token Services for Cash, which facilitates multimillion dollar transactions for the bank’s institutional customers, has moved from a pilot to a live commercial solution after the technology was trialled in partnership with shipping agents CB Fenton and GAC Panama Shipping.

Talking about the launch of the bank’s new blockchain-powered banking services, group head of global transaction services at DBS Lim Soon Chong said that the move will enable companies and public sector entities to optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement.

“It marks a significant step forward in transaction banking and demonstrates how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences,” continued Soon Chong.

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