The acceptance of cryptocurrencies and blockchain technology by Singapore is undoubtedly laudable and is still ongoing. The largest retail bank in the country is now making the latest endeavor related to private-backed crypto. The DBS Bank in Singapore announced this week that will be launching a crypto trading and exchange service. The bank explained in a press release that its new division was being launched for targeting institutional investors, as a large majority of them have shown an interest in cryptocurrencies. The new platform will be named DBS Digital Exchange and it will first start its offerings with four cryptocurrencies.
These four options are Bitcoin, Bitcoin Cash, Ether, and XRP. The bank did not disclose whether it intends to provide support for other assets in the future or not. Moreover, the platform will also have the backing of the largest asset and derivatives exchange in the country called SGX, which will have a 10% stake in the DBS Digital Exchange. The CEO of the DBS Group, Piyush Gupta said that this decision was in accordance with the bank’s belief that the digital currency industry has to be adopted by Singapore in order to stay competitive and maintain its position as a global financial hub.
He highlighted that digital asset and currency trading has gained a great deal of traction in the country and companies will have to embrace then in the foreseeable future. DBS Digital Exchange will not only provide trading services but also act as a platform that tokenizes assets, such as bonds, private equity funds, and shares of some unlisted companies. The platform also has plans of integrating itself in the Asian financial system deeply by enabling investors to purchase and sell cryptocurrencies in exchange for four fiat currencies, which are the Singaporean Dollar, the US Dollar, the Japanese yen, and the Hong Kong dollar.
A custodial service will also be provided to clients for storing their digital assets, which will enable them to take advantage of the robust security infrastructure of DBS Bank. The chief executive of SGX, Loh Boon Chye, appreciated the move and said that it was a good opportunity for deepening the scale and liquidity of the digital asset market of the country. It was back in October when DBS Bank’s interest in the digital asset space was reported. Industry sources had claimed that a wide range of cryptocurrencies would be supported by the platform, including the ones listed above as well as others like Ethereum Classic.
The report had claimed that the exchange itself wouldn’t hold any assets and they would be stored with DBS Bank instead. The bank would use its custodial services for ensuring safety and security. Initially, the exchange was planning on serving small and medium businesses, but have now decided to offer their services to large firms only. DBS Bank has become the second renowned bank in the world to offer services to institutional clients. A custody service called Zodia was also announced by one of the top banks in the United Kingdom, Standard Chartered.
