Nearly 90% of businesses are turning to tokenised money, DBS survey shows

A recent survey conducted by DBS Bank has revealed that an overwhelming 88% of global businesses with annual revenues exceeding US$500 million (S$640.9 million) are utilizing or piloting tokenised money. According to Lim Soon Chong, the group head of global transaction services at DBS, the adoption of tokenised money is progressing more swiftly than anticipated, driven by the benefits it offers businesses.

Stablecoins emerged as the most prevalent form of tokenised money, being used by 63% of the surveyed businesses. Other popular tokenised instruments included tokenised deposits (53%) and tokenised money market funds (52%).

Stablecoins, which provide better fungibility across payment intermediaries and have less stringent permission requirements, were identified as the primary reason for their widespread adoption. Furthermore, Southeast Asia was identified as the primary destination for businesses seeking to expand into new markets, followed by Australia and New Zealand.

India ranked third. The survey also found that businesses in Australia and the UK are increasingly considering using the Chinese yuan for trade settlement in the near future. This is largely due to the recent appreciation of the yuan and the Chinese government's efforts to internationalize the renminbi. As Chinese exporters offer more favorable commercial terms for transactions denominated in yuan, the adoption of the yuan is expected to grow, according to Lim.