Singaporean banking giant DBS has launched a blockchain-based solution that leverages smart contracts to simplify and expedite the distribution of government grants.
According to local media reports, DBS completed a pilot project in partnership with Enterprise Singapore and the Singapore Fintech Association (SFA). During the pilot, 27 local fintech firms received grants through a permissioned blockchain developed by DBS. Unlike public blockchains, permissioned blockchains are partially decentralized and require participants to be pre-approved, ensuring a controlled and secure network.
DBS’s permissioned blockchain enables Enterprise Singapore (ESG) and the Singapore Fintech Association (SFA) to define grant program criteria and ensure that only approved beneficiaries receive funds. Smart contracts on this blockchain automatically verify and enforce these conditions, leading to quicker disbursement of grants with minimal manual intervention. According to DBS, this solution significantly accelerates delivering cash payouts to beneficiaries.
DBS stated that the pilot aimed to demonstrate how programmable grants can enhance the transparency and efficiency of the grant disbursement process.
Han Kwee Juan, DBS Singapore’s Country Head, anticipates that the new solution will be expanded to additional use cases, including milestone-based project payments and consumer rewards.
The bank also noted that they plan to explore further applications with more government agencies under Project Orchid, a multi-year digital currency initiative launched by the Monetary Authority of Singapore to investigate various uses for digital money.
DBS’s launch of a blockchain solution for more efficient government grant disbursement highlights the increasing trend of using blockchain technology to enhance financial services and streamline operations in an increasingly digital world.
Notably, this development comes on the heels of DBS’s recent partnership with Ant International a subsidiary of Chinese tech giant Ant Group to launch a blockchain-based treasury solution. DBS’s permissioned blockchain will be leveraged to facilitate multi-currency treasury operations for Ant International, the company behind the Alipay+ mobile payment service.
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