Saltık 
Singapore’s DBS Bank has launched a solution that streamlines the distribution of government grants using blockchain technology. The innovative solution was developed as part of the Monetary Authority of Singapore’s (MAS) Project Orchid initiative, which aims to test the benefits of tokenization.
DBS Bank partnered with Enterprise Singapore (ESG), a government agency under the Ministry of Trade and Industry in Singapore, and the Singapore Fintech Alliance (SFA), which promotes financial technology in the country, on the pilot.
DBS Bank Aims to Distribution of Government Grants Using Smart Contracts
During the pilot, SFA distributed government grants to 27 members. DBS said blockchain-based programmable grants could increase efficiency, improve governance and enable businesses to access government grants faster.
With DBS’s permissioned blockchain, intermediaries such as ESG and SFA can set the terms of programs and manage the distribution of grants. According to DBS, this process involves grants being given to approved recipients if certain business conditions are met.
Once the conditions are met, smart contracts verify that these conditions have been met. After this process, the grants are automatically distributed to the beneficiaries.
Might interest you: Whale Loses $55 Million in Devastating Crypto Hack
This solution increases management control while reducing the need for manual cash transactions by intermediaries. This allows businesses to receive cash payments from the government much faster.
In addition, the bank’s permissioned blockchain provides full visibility into the process, providing greater transparency to the organizations involved.
Learnings from MAS’ Project Orchid Initiative
DBS Bank said that the programmable grants pilot applies the bank’s learnings from MAS-led Project Orchid. The digital currency initiative is testing the benefits of tokenization with local stakeholders.
DBS has also collaborated with digital payment provider Ant International on a blockchain-based treasury and liquidity management solution. On August 13, DBS launched treasury tokens, which Ant will use for liquidity and treasury management. These tokens are hosted on the bank’s Ethereum Virtual Machine (EVM) permissioned blockchain.
This solution was built using systems developed by the bank at Project Guardian, another digital currency initiative led by MAS.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.