DBS and Ant International have launched a pilot of a blockchain-powered treasury and liquidity management solution designed to enable Ant International to reduce the settlement of intragroup transactions from days to seconds.
The solution, DBS Treasury Tokens, will enable Ant International, a provider of digital payment and financial services solutions, to use the digital form factor to achieve instant, multicurrency treasury and liquidity management on DBS’ permissioned blockchain for its entities across multiple markets, the companies said in a Tuesday (Aug. 13) press release.
In addition, because DBS’ permissioned blockchain is integrated with Ant International’s treasury management solution, Whale, Ant International will be able to seamlessly manage its intragroup liquidity around the clock, according to the release.
“This milestone with DBS is an important step forward in addressing challenges like reducing costs and transaction risks for cross-border payments,” Kelvin Li, head of platform tech at Ant International, said in the release.
DBS Treasury Tokens aims to solve challenges faced by large corporates like Ant International that operate several entities across multiple markets and need to manage payments, collections, funding needs and cash positions across time zones and currencies, according to the release.
By reducing the settlement of intragroup transactions, the solution optimizes intragroup liquidity and working capital and provides corporate treasurers with greater visibility, predictability and control over the group’s cash position, per the release.
“This new capability comes at a time when the treasury needs of businesses are evolving to meet the rise of eCommerce and on-demand services on a 24/7 basis,” Lim Soon Chong, group head of global transaction services at DBS Bank, said in the release. “DBS Treasury Tokens and our partnership with Ant International demonstrates how corporates can seize such opportunities with full confidence that their liquidity management capabilities can scale in tandem.”
This pilot stems from what DBS learned from its participation in two projects led by the Monetary Authority of Singapore: Project Orchid, which aims to develop the technology necessary for a digital Singapore dollar, and Project Guardian, which brought together policymakers and the financial industry to use asset tokenization to enhance the liquidity and efficiency of financial markets, according to the release.
DBS Treasury Tokens is one of the industry applications tested under Project Guardian, per the release.
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