DBS Bank is currently conducting a pilot program for government grants that are based on blockchain

DBS Bank’s involvement in Project Orchid, a demonstration of the advantages of tokenization by the Monetary Authority of Singapore, serves as the foundation for the blockchain-based solution.

DBS Bank of Singapore has implemented a solution that employs blockchain technology to optimize the distribution of government grants.

In the pilot, DBS Bank partnered with Enterprise Singapore (ESG), a statutory body under the Ministry of Trade and Industry of the Government of Singapore, and the Singapore Fintech Association (SFA), an organization that advocates for financial technology in the country.

The SFA distributed government grants to 27 members during the pilot. According to DBS, the pilot demonstrated the potential of blockchain-based programmable grants to enhance governance, increase efficiency, and facilitate the quicker access of businesses to government grants.

ESG and its middle-men, like the SFA, can set the rules for the programs and control how grants are given out with DBS’s permissioned blockchain. This encompasses disbursements to approved beneficiaries upon the fulfillment of specific business conditions, as per DBS.

Smart contracts will affirm that the conditions have been satisfied once they have been satisfied. Upon completion of this procedure, the beneficiaries will receive the grants automatically.

According to DBS, the solution improves governance control and minimizes the necessity for intermediaries to manually process currency management. This enables enterprises to receive their financial payments from the government at a significantly quicker pace.

In addition, the permissioned blockchain of the bank provides complete transparency to the organizations involved, as it provides clear visibility of the process.

Networks with an access control layer that grants participants only a pre-approved level of authority are known as permissioned blockchains. These blockchains are only partially decentralized, despite the fact that they employ distributed ledger technology.

DBS Bank also observed that the programmable grants pilot is a practical application of the knowledge it has acquired from its involvement in Project Orchid, a digital currency initiative spearheaded by the Monetary Authority of Singapore (MAS). The initiative evaluates the advantages of tokenization with stakeholders in the local community.

Additionally, DBS Bank has previously collaborated with Ant International, a digital payment provider, to develop a blockchain-based treasury and liquidity management solution. DBS introduced its treasury tokens on August 13, which Ant intends to utilize for liquidity and treasury administration. The tokens are located in the permissioned blockchain of the bank’s Ethereum Virtual Machine (EVM).

The solution was devised using systems that were developed during the company’s involvement in Project Guardian, another MAS-led initiative on digital currencies.

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