Singapore banking giant DBS has launched a blockchain-based solution that uses smart contracts to streamline the disbursement of government subsidies.
According to a local media report, DBS completed the pilot project in collaboration with Enterprise Singapore and the Singapore Fintech Association.
As part of the pilot, 27 local fintech companies received grants from the SFA using a permissioned blockchain developed by DBS. Permissioned blockchains are partially decentralized and limit who can participate in the network. Unlike public blockchains, permissioned blockchains require prior approval from participants.
Using DBS’s permissioned blockchain, ESG and SFA can set the terms and conditions for grant programs and ensure that only approved recipients receive the grants.
Smart contracts check these pre-determined conditions and grants are paid out automatically when the conditions are met. DBS adds that the solution reduces the need for manual intervention and allows beneficiaries to receive cash payouts much faster.
DBS stated that the pilot was conducted to demonstrate how these programmable grants can improve the transparency and efficiency of grant disbursements.
Han Kwee Juan, Country Head of DBS Singapore, expects the new solution to be “expanded to more use cases, including milestone-based project payments, consumer rewards and more.”
DBS also plans to explore further use cases for the solution with other government agencies under Project Orchid. The Monetary Authority of Singapore launched the multi-year Digital Currency Initiative last year to explore various use cases for digital money.
DBS is a pioneer in blockchain innovations
Among other initiatives, DBS recently launched a blockchain-based pilot project in partnership with Ant International to enhance cross-border treasury and liquidity management. The DBS Treasury Tokens project also leverages DBS’s permissioned blockchain to support multi-currency treasury operations for Ant International, the company behind the Alipay+ mobile payment service.
In addition to its tokenization efforts, DBS is also making progress in the cryptocurrency sector. In July, the bank became a custodian partner for Paxos, a New York-based stablecoin issuer. In February, DBS expanded its services to offer crypto solutions to clients in Hong Kong.
