DBS has partnered with Enterprise Singapore (EnterpriseSG) and the Singapore Fintech Association (SFA) to launch a programmable grant-making pilot project.
The initiative aims to streamline government spending to businesses and provide a better user experience while improving governance and efficiency.
It will also allow businesses to access government cash transfers more quickly.
The pilot version DBS’ Involvement in Project OrchidA multi-year initiative led by the Monetary Authority of Singapore (MAS) to develop infrastructure for a digital Singapore dollar.
Leveraging programmable payments Limited Purpose Money (PBM)A protocol that ensures that funds are only paid out if certain conditions are met.
Once the smart contract verifies these conditions, the grant is automatically paid out as cash to the recipient.
This approach provides greater control over the payment process, reducing the need for manual intervention and speeding up the release of funds to businesses.
The pilot, which took place during the Singapore Fintech Festival 2023, saw the participation of 27 local fintech companies, including Advance Intelligence, Aspire, Experian Singapore, InterSystems and Dobbin.
DBS‘We used permissioned blockchain to automate payments and ensure that only approved recipients receive grants once predefined conditions are met.
The bank plans to work with other government agencies to explore further applications of programmable payments. Project Orchid.
The pilot reflects ongoing efforts to integrate blockchain technology into financial processes, with an eye toward even broader use cases in the future.
Mr Hang Kwee Juan, country head of DBS Singapore, said:
“Smart contract technology can automate and streamline grant disbursement for government agencies, enabling faster and more secure disbursements and payments.
We look forward to seeing this payments innovation expand to more use cases, including milestone-based project payments, consumer rewards and more.”
SFA president Shadab Taiyaabi added:
“The solution is designed to streamline the payment of business grants, allowing local businesses to receive payments more quickly and efficiently, providing additional capital to expand key areas of business.
SFA will continue to support public-private collaboration on solutions such as programmable subsidy distribution as Singapore progresses towards its Smart Nation goal.”
Featured Image Credit: Free Pick
