DBS from Singapore partners with Open Government Products to launch a live pilot for money-based vouchers through a blockchain system.
Singapore-based DBS now partners with Open Government Products to launch a live pilot for money-based vouchers. Open Government Products represents a tech team that allows the issuance of purpose-bound money-based vouchers.
Apparently, DBS issues the tokenized Singapore dollars on a blockchain system. DBS acts as a financial services group based in Singapore.
The tokenization project
The pilot aims to allow retail shops to benefit from instant settlements and payments. The project also encompasses collections through customer usage of vouchers.
Ultimately, this increases the cash flow and saves time on administrative backend tasks. The pilot forms part of the project Orchid, led by the Monetary Authority of Singapore.
The project seeks to enable a programmable digital Singapore dollar. DBS will issue digital Singapore dollars. On the other hand, Open Government Products will enable smart contract capabilities.
DBS insists that the pilot phase may prove useful to the Community Development Council voucher scheme. The pilot will assist with the negative effects of rising inflation and increased costs of living.
DBS also cited instantaneous payments and proposed doing away with backend administration. The pilot project will start relatively small with an aim of expansion. The pilot will start with six merchants and 1,000 select customers.
Project guardian of Singapore
In May, the Monetary Authority of Singapore (MAS) launched a collaborative initiative called Project Guardian. The collaboration involved big players such as DBS, JPMorgan and Marketnode.
The partnership aimed at researching the uses of open and interoperable networks with blockchains. MAS continuously worked on regulations that might permit tokenization.
Subsequently, their efforts have borne fruit. The tokenization process allows a crypto token to represent a traditional asset like stocks.
The Central Bank of Singapore also insisted on looking into issues relating to digital assets. This involved wholesale funding markets through existing financial infrastructure.
The first industry pilot under Project Guardian involved the creation of a permission liquidity pool. The liquidity pool consisted of tokenized bonds and deposits.
The pilot sought to carry out secured borrowing and lending on a public blockchain network. The execution occurred after the implementation of smart contracts.
MAS and JPMorgan partnership
In June, MAS partnered with major financial service companies and banks. The partnership sought to explore the use of asset tokenization and decentralized finance (DeFi).
The strategic goal was to check the viability of the application in asset tokenization. The collaboration also sought to explore the economic potential in managing risks and establishing financial stability.
With the new partnership, more is expected from the project.
