DBS to Start Members-Only Digital Bourse for Crypto Assets

By | December 11, 2020

DBS Group Holdings Ltd. will set up a digital exchange for cryptocurrencies for businesses and wealthy clients, while allowing fund raising via asset tokenization on a platform run by probably the largest savings account in Southeast Asia.

The planned setup is in partnership with Singapore Exchange Ltd., which is going to hold 10 % in the brand new bourse, the Singapore based lender said Thursday in an exchange filing. The new solutions include resource tokenization, secondary trading of digital assets including Bitcoin, and custody services, DBS said.

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The Monetary Authority of Singapore, the main savings account, provided an in principle endorsement to the new bourse to trade assets from shares, bonds and private equity money, the bank said. Such regulatory blessing makes it possible for DBS to be among a handful of major banks to dabble in the crypto industry. While crypto is gaining institutional validation, the asset type still sees periodic cyber hacks and it is still seen by a number of as affiliated with illicit fund passes.

The time has are available, the moment is right for this industry to progressively find sponsorship and partnership from the structured banking sector, DBS Chief Executive Officer Piyush Gupta told a press briefing following the announcement. Trading will start as early as week which is next, he said.

The bank has robust governance and controls to monitor as well as stop financial crime, he mentioned.

Soaring Prices
Digital currencies have gotten popularity this season as prices soar. Central banks out of China to Europe to the U.S. are actually studying whether to develop their own variations of digital currencies. Bitcoin is actually up about 150 % in addition to Ether has much more than tripled since the beginning of the season. Meantime, institutions and investors are quickly jumping into the area.

DBS’s move into the crypto spot is significant as we’re now seeing the total blurring of lines between traditional financial services provider as well as the digital currency/ securities blockchain planet, which was in the past seen to become an alternate universe, mentioned lawyer Nizam Ismail, which runs Singapore-based Ethikom, a consultancy tight for compliance.

Standard Chartered Plc., which has considerable presence in Singapore, prior this specific week agreed to begin a cryptocurrency custodian for institutional investor in partnership with Northern Trust Corp. Julius Baer Group Ltd., the Zurich-based private bank, is actually partnering with startup SEBA Crypto AG to provide its wealthy clients with digital asset solutions and plans to extend the bank’s service to storage, investments and transaction in this kind of assets.

The DBS Digital Exchange is going to be for institutional investors and competent individuals, including clients of its DBS Vickers securities device and the private bank of its. It will offer exchange services involving Singapore, U.S. and Hong Kong dollars, and the yen, as well as Bitcoin, Ether, Bitcoin cash and XRP