- Blockchain-Based Treasury Token is implemented on a permissioned, Ethereum compatible, distributed ledger for real time and multi-currency Treasury and liquidity management.
- DBS Bank collaborates with digital payment company, Ant International, to trial a treasury and a liquidity management product using the blockchain.
- The tokens and connection to Ant systems are to improve the work of Ant’s treasury and clarity of tokens.
- They are viewed on the one hand as the possible role model for the other parts of the banking system the use of the concept of blockchain in improving such archaic systems as modern treasury.
Ant International To Tie Up With DBS Bank
Multinational banking group has selected Ant International to work on a new blockchain-based treasury and liquidity management product test. It is interested in the objective of demonstrating the efficiency of adopting the cryptocurrency technology in improving the efficiency of treasury management.
Introducing DBS Treasury Tokens
The solution involves redeeming DBS Treasury tokens to the bank’s Ethereum – compatible, permissioned DLT. These tokens will be used by Ant International organizations for real-time single/multiple currency management of treasury and liquidity in several markets it operates. This is safe since permissioned blockchains have restriction to the nodes that can access the chain while using some of the benefits of block chain.
Ant’s Treasury Management Solution
This permissioned blockchain is designed by DBS and has been successfully integrated into the treasury management platform of Ant called Whale. It enables the payments provider to have a unified and real-time analysis of intragroup cash flows of all the entities of the organisation. It is also interoperable with multiple industrty payment frameworks associated with DBS.
Beneficial effects of higher transparency and efficiency
The most important justification and the link to Ant systems for DBS Treasury tokens is to improve efficiency and operational transparency in the course of Ant’s treasury. As a result, when using the distributed ledgers to facilitate the internal funding flows, Dunkin can obtain a real time view and a synchronization of the entities. It can also be effective for the purpose possibly of achieving an efficient utilization of liquidity.
Looking Ahead
Main Opportunities Connected with the Procurement of Treasury Products with the Help of Blockchain
The solution is available and for now, it is only implemented on a pilot basis. But DBS has greater visions for a broader decentralized ledger technology adoption in treasury and working capital funding for supply chain as well as in STB. This is especially so seeing that DBS is one of the largest banks from Asia, and provided a good example for the rest of the banking system, on how the outdated treasury system can be improved using the blockchain technology. However, in the unlikelihood that the pilot is successful there is so much that can be achieved in cryptocurrencies to transform the financial services.
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