DBS Bank, the largest consumer bank in Singapore, is opening its DBS Token Services to institutional clients. This program connects the bank’s functions to an EVM-compatible blockchain, enabling tokenization and smart contracts.
So far, DBS Bank has yet to comment on a possible rollout to non-institutional clients.
DBS Bank’s New Program
DBS Bank, the largest consumer bank in Singapore, announced today via press release that it would introduce blockchain-powered banking. The program, available to institutional clients, is called DBS Token Services, and it includes a variety of new features like tokenization and smart contracts.
Read More: What is Tokenization on Blockchain?
More specifically, DBS Token Services integrates the bank’s payment channels into an EVM-compatible blockchain. This enables several new functions by hooking up the bank’s pre-existing “Treasury Tokens” system to smart contract features, thus allowing clients to program various novel solutions.
“By leveraging tokenization and smart contract capabilities, DBS Token Services enables companies and public sector entities to optimize 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,” Lim Soon Chong, Group Head of Global Transaction Services
This is far from DBS Bank’s first foray into the crypto space. Two years ago, the firm opened up crypto trading to its wealthiest clients, which inspired its main competitors to enter the space as well. Additionally, it conducted a brief experiment with the Metaverse last year after it had already lost mainstream interest.
However, considering that this feature was only available to clients with at least $246,000 in investible assets, it does beg the question of whether these services will ever reach private clients. The press release discusses tools for “corporate treasurers” and “public sector entities,” but does not mention non-institutional clients.
Read More: Understanding Smart Contracts: Read, Write, and Audit
Nevertheless, this is still a landmark for crypto’s institutional adoption. DBS Bank has over $200 billion in assets under management, and Singapore has attracted a great deal of interest from the space. If this move inspires its main competitors to start offering similar services, as it did two years ago, the industry as a whole will benefit.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
