Singapore’s DBS Bank has introduced a blockchain-based solution to streamline the distribution of government grants. This pilot initiative was carried out in collaboration with Enterprise Singapore (ESG), a statutory board under the Ministry of Trade and Industry, and the Singapore Fintech Association (SFA), which supports the country’s fintech sector.
DBS Bank Utilizes Smart Contracts for Government Grants
In the pilot, the SFA successfully distributed government grants to 27 of its members. DBS highlighted how the use of blockchain-based programmable grants can enhance efficiency, strengthen governance, and expedite businesses’ access to government funds.
Using DBS’s permissioned blockchain, ESG and intermediaries like SFA can set the conditions for the grant programs and manage the disbursement process. When specific business criteria are met, smart contracts automatically verify and release the grants to the recipients.
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This blockchain solution improves governance controls and reduces the need for manual processing by intermediaries, allowing businesses to receive funds more quickly. Additionally, the permissioned blockchain provides full transparency throughout the process, ensuring greater visibility for all involved organizations.
Insights from Project Orchid
DBS noted that the programmable grants pilot leverages insights gained from Project Orchid, a digital currency initiative led by the Monetary Authority of Singapore (MAS) that explores the benefits of tokenization with local stakeholders.
Furthermore, DBS has previously worked with Ant International on a blockchain-based treasury and liquidity management solution. On August 13, DBS launched treasury tokens within its Ethereum Virtual Machine (EVM) permissioned blockchain, which Ant will use for liquidity and treasury management. This solution was developed using systems from DBS participation in another MAS-led initiative, Project Guardian.
Cre: cointelegraph.
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