DBS Bank Launches Pilot to Use Blockchain Technology to Distribute Government Grants
Date: 2024-08-22 Author: Gabriel Deangelo Categories: BLOCKCHAIN
For the pilot, DBS partnered with Enterprise Singapore (ESG), a statutory body under the Ministry of Trade and Industry of Singapore, and the Singapore Fintech Association (SFA), which promotes fintech in the country.
Using Smart Contracts to Distribute Grants
During the pilot, the SFA distributed government grants to 27 participants. DBS said the pilot demonstrated how blockchain and programmable grants can improve efficiency, improve governance, and speed up business access to government subsidies.
With the permissioned blockchain, DBS, ESG, and their intermediaries, such as the SFA, can set the terms of the programs and manage the distribution of grants. This includes automatically distributing funds to approved recipients once certain conditions are met.
Smart contracts verify that the terms are met, and once approved, funds are automatically transferred to beneficiaries. This solution improves compliance monitoring and reduces the need for manual payment processing, allowing companies to receive payments faster.
In addition, DBS’s permissioned blockchain provides full transparency into the process, giving participants more confidence.
Results from the MAS-led Orchid Project
DBS also noted that the programmable grants pilot builds on the lessons learned from its participation in the Orchid Project, a digital currency initiative led by the Monetary Authority of Singapore (MAS). The project aims to explore the benefits of tokenization with local stakeholders.
DBS previously partnered with digital payments provider Ant International to build a blockchain-based solution for treasury and liquidity management. In August 2023, the bank launched its treasury tokens, which Ant will use for liquidity and treasury management. These tokens operate on a permissioned blockchain network based on the Ethereum Virtual Machine (EVM).
These solutions were developed using systems created by another MAS digital currency project, Project Guardian.
