DBS Survey Reveals 88% of Large Businesses Testing Tokenized Cash
Written with artificial intelligence.
A recent DBS survey indicates that 88% of large businesses are either using or piloting tokenized cash solutions to enhance payment processes. The survey highlights that stablecoins are the most adopted instruments, with 63% of respondents planning to use them.
Growing Interest in Tokenized Cash
A DBS survey reveals that a significant majority of large businesses, 88%, are actively engaging with tokenized cash solutions to improve cash management and facilitate cross-border payments. Conducted by EY, the study surveyed 422 business and finance leaders from 11 markets, including the U.S., China, Germany, and the U.K., all representing firms with annual revenues exceeding $500 million.
Out of the respondents, 24% have implemented tokenized cash technologies at scale, while 43% are using them in specific markets. Additionally, 21% are running pilot programs or proofs of concept, leaving only 12% either exploring the technology or not utilizing it at all.
Preferred Instruments for Tokenization
The survey identified stablecoins as the most favored instrument among participants, with 63% currently using or planning to adopt them. Other notable instruments include tokenized deposits at 53% and tokenized money market funds at 52%.
Respondents anticipate several benefits from these technologies, particularly faster payment processing. About 71% indicated that they have seen improvements in real-time cross-border payments or expect them within two years, while 65% noted enhancements in treasury liquidity management.
Challenges and Future Outlook
Despite the growing interest, challenges such as regulatory uncertainty, security risks, and integration difficulties remain prevalent. Nearly two-thirds of survey participants expressed a desire for banks to provide a unified access point to the tokenized money ecosystem, and 63% sought assistance with pilot projects and integration.
DBS has positioned itself as a leader in this space, having launched DBS Token Services in 2024, which connects its permissioned blockchain to its payment systems. This infrastructure allows for 24/7 settlements governed by predetermined conditions, exemplifying the potential of tokenized cash solutions. Other banks, like Citi, have also reported significant corporate usage, with hundreds of clients transferring nearly $1 billion daily through their token services.