Indeed, DBS Bank is launching a new project that introduces cash tokens on a permissioned blockchain compatible with the EVM. This project aims to optimize liquidity management for companies on a global scale.
To achieve this, DBS is partnering with Ant International, a leader in digital payments. Together, they are developing an innovative solution based on blockchain technology. This will allow companies to manage their cash flows more efficiently and quickly.
On August 13, DBS Bank announced the pilot launch of the DBS cash tokens. Ant International plans to use these tokens for the instant, multi-currency management of cash and liquidity.
DBS integrates a permissioned blockchain compatible with EVM
Permissioned blockchains, or private blockchains, are networks with a layer of access control. This adds a security mechanism. Only participants with certain pre-approved levels of authority can access these networks.
Furthermore, users must obtain permission from the network owner to join. Although permissioned blockchains use distributed ledger technology (DLT), they are only partially decentralized.
According to DBS, their permissioned blockchain is compatible with the Ethereum virtual machine. It is also integrated into the bank’s main payment engine.
Moreover, this development improves the scalability and interoperability of the system with various payment infrastructures connected to DBS.
The bank has also noted that the blockchain has been integrated into Ant International’s cash management platform, Whale. This allows the company to manage its intra-group liquidity seamlessly.
Indeed, the platform also employs artificial intelligence and encryption. The goal is to enhance the transparency and efficiency of fund transfers between bank accounts.
Testing the benefits of tokenization
The announcement specifies that DBS’s cash token project applies the knowledge and systems developed by the company during its participation in the Orchid project and the Guardian project of the Monetary Authority of Singapore (MAS). These projects are testing the benefits of tokenization.
According to DBS, its cash tokens are one of the applications being tested as part of the Guardian project.
Furthermore, the new project addresses an urgent need due to the rise of e-commerce and on-demand services.
DBS’s permissioned blockchain also constitutes the foundation for new efficiencies and capabilities in traditional banking services, including programmable, fractional, and atomic value transfer.
Once again, blockchain and the cryptographic system are being leveraged to optimize processes in the banking sector.
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