A DBS Bank survey finds that 88% of large firms are exploring tokenized money, with stablecoins leading the interest.
A recent survey by Singapore's DBS Bank reveals that 88% of large companies are either using or testing tokenized money for payments and liquidity management. This study involved 422 financial executives and corporate treasurers from 11 countries, including the US, UK, Germany, China, and Singapore, all representing organizations with annual revenues exceeding $500 million.
However, the 88% figure does not indicate a complete transition to this new infrastructure. The survey found that 24% of respondents have implemented tokenized money on a large scale, 43% are using it in specific departments or regions, and 21% are conducting pilot tests.
Stablecoins Lead the Way
Stablecoins emerged as the most favored tool among companies, with 63% indicating their use or consideration. Other notable instruments include tokenized bank deposits (53%) and tokenized money market funds (52%). According to DBS's head of global transaction services, Lim Soon Chong, stablecoins offer greater interoperability across various payment intermediaries and streamline access procedures. However, this framework also presents challenges related to compliance with anti-money laundering regulations for large corporations.
Respondents highlighted several advantages they are currently experiencing or anticipate from tokenization over the next two years:
- 72% expect improved transaction traceability and auditing capabilities;
- 71% look forward to real-time cross-border payments;
- 66% foresee enhanced internal controls;
- 65% anticipate increased liquidity management efficiency.
Shifts in Currency and Trade Routes
The growing interest in tokenized money coincides with shifts in international trade. Over three-quarters of surveyed companies reported needing to adapt operations and explore new markets over the past year. A similar proportion noted increased volatility in currency exchange rates and energy prices, along with reduced predictability in transactions.
Participants identified Southeast Asia as the primary focus for international expansion, followed by Australia, New Zealand, and India. Additionally, 78% of companies have diversified their transaction currencies for international trade, with only 2% not considering additional currencies. More than half of respondents from Australia and the UK expect to use the Chinese yuan for trade settlements within the next one to two years.
Companies Seek Bank Support
Despite the enthusiasm for new instruments, businesses face challenges in implementation. DBS highlighted regulatory uncertainty, cybersecurity risks, a shortage of skilled professionals, and integration difficulties with existing financial systems as significant hurdles. According to the survey, 64% of respondents desire a unified access point from banks to various tokenized money platforms, while 63% seek support for pilot projects and integration.
Simultaneously, companies are integrating artificial intelligence into financial operations, with about three-quarters of participants already noticing or expecting improvements in cash flow forecasting, payment reconciliation, error detection, and issue resolution in the next two years.
DBS anticipates that the evolution of tokenized money will lead to the emergence of multiple parallel payment networks, which could complicate corporate transactions and increase regulatory compliance costs. Notably, DBS and Citi conducted a cross-border dollar payment using tokenized deposits through the Swift Digital Ledger blockchain infrastructure in September, achieving a transfer time of mere minutes compared to the usual one to two business days.
