Singapore’s DBS Bank is making waves in the fintech world.
As per the latest crypto news, DBS Bank has unveiled an innovative blockchain-based solution aimed at streamlining the disbursement of government grants.
In a pilot initiative, DBS partnered with Enterprise Singapore (ESG), a statutory board under the Ministry of Trade and Industry, and the Singapore Fintech Association (SFA), a key player in the country’s financial technology sector.
During this pilot, DBS used smart contracts to distribute government grants to 27 SFA members. The results were impressive, demonstrating how blockchain-based programmable grants can enhance efficiency, strengthen governance, and expedite access to funds for businesses.
DBS’s permissioned blockchain allows ESG and intermediaries like the SFA to define program conditions and oversee grant disbursements. Once specific business criteria are met, smart contracts automatically verify compliance and trigger the release of funds to the approved recipients.
This process not only ensures faster access to government grants but also reduces the need for manual cash handling by intermediaries, enhancing overall governance.
One of the standout features of DBS’s solution is its transparency. The permissioned blockchain offers full visibility into the process, providing greater transparency for all organizations involved.
Unlike public blockchains, permissioned blockchains operate with an access control layer, meaning only participants with pre-approved authority levels can engage with the network. Although they leverage distributed ledger technology, these blockchains are only partially decentralized.
Cryptocurrency news suggests this pilot program builds on DBS’s previous experiences, particularly its involvement in Project Orchid, a digital currency initiative led by the Monetary Authority of Singapore (MAS). The project explores the benefits of tokenization in collaboration with local stakeholders.
