The Singaporean bank DBS announced on Wednesday that its clients can now receive payments in e-CNY, the digital currency issued by the Chinese central bank. The new platform allows for automated settlement of e-CNY into these customers’ CNY bank deposit accounts. At least one client has already completed a transaction using this platform.
DBS is also taking part in Project Guardian, an initiative from the Monetary Authority of Singapore to experiment with asset tokenization and DeFi (Decentralized Finance) for traditional banks. This project involves Aave, Uniswap and Polygon alongside banks such as JPMorgan, SBI Digital and DBS Bank, as well as Marketnode and Temasek.
The first phase of testing involved tokenized Singapore dollars (SGD), Japanese yen (JPY), Japanese government bonds and Singapore government securities. All transactions were completed through Polygon, Aave and Uniswap.
This new platform and the Project Guardian initiative demonstrate the potential of digital currency and DeFi technology in traditional banking, and will no doubt lead to further innovations in the industry.
