One of Singapore’s leading banks, DBS Bank, hits another milestone through blockchain technology. In a new development, the bank is piloting a blockchain-powered disbursement of government grants.
DBS made this groundbreaking feat by partnering with Enterprise Singapore and the Singapore Fintech Association. This move aims to enhance governance via improved, efficient, and speedy access to government funds.
Singapore-Based DBS Bank Introduces Blockchain-Based Solution For Government Grant Disbursement
DBS Bank, a leading Singapore-based bank, has introduced a blockchain-powered solution to ensure improved government grant disbursement. According to a local news outlet, Fintech News, the bank announced the feat.
INTEL: Singaporean bank DBS has introduced a blockchain-based solution to optimize the payment of government grants
— Solid Intel 📡 (@solidintel_x) August 22, 2024
Further, the bank noted that the initiative focuses on enhancing efficiency and timeliness in distributing government grants. It also improves user experience by streamlining the governance processes.
DBS’s pilot comes through collaboration with the Singapore Fintech Association (SFA) and Enterprise Singapore (ESG). The bank tested the pilot solution by distributing grants to 27 fintech entities via its blockchain-powered platform.
The process involved applying smart contracts that allow the system to automate grant allocation. This means that the system sets specific conditions to meet before initiating fund disbursement.
ESG, FSA, and other intermediaries determine the conditions for the disbursement program. So, the overall automation process will verify the set conditions for each beneficiary before disbursing funds.
Additionally, DBS noted that the solution eliminates the manual processing of cash-related governance activities, boosts governance control, and ensures speed in the disbursement process for businesses or beneficiaries.
Moreover, DBS operates with a permissioned blockchain that is more transparent for this new disbursement solution. All entities involved in the disbursement have complete visibility of all data during the blockchain process.
Notably, though permissioned blockchains are partially decentralized, they come with an access control layer that offers participants a pre-approved authority level.
DBS noted that this new solution is based on its experience participating in Project Orchid, a Monetary Authority of Singapore (MAS)-led digital currency initiative. Notably, the project, which explored the benefits of tokenization, involved several other entities and local stakeholders.
DBS Commits To More Blockchain-Based Projects
DBS Bank has recently rolled out other blockchain-powered projects. The bank announced the launch of blockchain-supported treasury tokens. It piloted the solution by collaborating with Ant Internation, a digital payment service provider.
More so, the bank developed the treasury tokens using its permissioned blockchain, which is compatible with Ethereum Virtual Machine (EVM). The treasury tokens will run on the DBS-permissioned blockchain, which integrates Ant International’s management platform, Whale.
Furthermore, Ant will leverage the partnership to enhance its multicurrency treasury and liquidity management. The firm will enjoy uninterrupted experience and liquidity. It will also optimize workflow, visibility, and transparency for Ant International customers.
In addition, Ant will use the treasury tokens to speed up its transaction settlement rates, bringing the timeline from days to mere seconds.
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Source : TechReport