DBS Bank, Southeast Asia’s largest financial institution, is making significant strides in the cryptocurrency space. The bank recently announced multiple achievements, including receiving in-principle approval from Singapore’s Monetary Authority of Singapore (MAS) for its brokerage arm, DBSV, and launching 24/7 operations for its crypto exchange.
These milestones position DBS as a leading player in the growing digital asset ecosystem, catering to increasing demand from institutional investors and asset managers.
DBS Receives MAS Approval
Preliminary Licensing for Crypto Services
DBS’s brokerage arm, DBSV, has received in-principle approval under Singapore’s Payment Services Act (PS Act) from the MAS.
- Next Steps: DBSV is working towards fulfilling the conditions for a full license.
- Future Capabilities: Once licensed, DBSV will:
- Directly support asset managers and corporates in trading digital payment tokens.
Significance of Approval
As one of the first financial institutions to secure this clearance, DBS strengthens its position in Singapore’s regulated crypto market, setting a benchmark for other institutions.
DBS Digital Exchange Goes 24/7
Round-the-Clock Operations
Starting August 16, the DBS Digital Exchange (DDex) will operate 24/7, addressing the need for greater accessibility and flexibility.
- Current Operations: Previously limited to Asian trading hours.
- Future Impact: Continuous trading will cater to global investors and boost transaction volumes.
Exclusive Access
The exchange remains open only to:
- Approved investors.
- Institutional clients.
Rapid Growth of DDex
Performance Metrics
Since its launch in late 2020, DDex has gained significant traction:
- Trading Volume:
- SGD 180 million (~$132.49 million) in Q2 2021, a 5x increase from Q1.
- Custodial Assets: SGD 130 million in digital assets under custody.
- Investor Base: Approximately 400 onboarded investors as of June 2021.
Supported Currencies
- Fiat: SGD, USD, HKD, JPY.
- Crypto: BTC, BCH, ETH, XRP.
Innovations and Services
Security Token Offerings (STOs)
DBS Digital Exchange is pioneering STOs, with its first listing completed in June 2021.
- STOs provide new investment opportunities and facilitate digital fundraising.
Crypto Trust Service
In May, DBS introduced a cryptocurrency trust service, offering secure storage and management solutions for digital assets.
DBS’s Strategic Vision
Market Leadership
DBS Capital Markets Group Head, Eng-Kwok Seat Moey, highlighted the growing demand for digital payment token services:
“We have seen keen interest among asset managers and corporates for access to digital payment token services… We are well-placed to meet this growing demand.”
Future Growth
- Doubling the Investor Base: DBS aims to double its investor base by the end of 2021.
- Increased Volumes: Round-the-clock operations are expected to further accelerate trading activity.
Impact of DBS’s Crypto Expansion
1. Strengthened Position in Crypto Market
DBS’s regulatory approval and service innovations position it as a leader in the institutional crypto space in Southeast Asia.
2. Enhanced Investor Confidence
Regulatory backing from MAS boosts trust among investors, making DBS a preferred choice for secure crypto transactions.
3. Pioneering Digital Innovation
With its focus on STOs and custodial services, DBS is shaping the future of digital asset management in the region.
FAQs
What is DBS’s latest achievement in crypto?
DBS has received in-principle approval from MAS for its brokerage arm, DBSV, and launched 24/7 operations for its crypto exchange, DDex.
What services does DBS Digital Exchange offer?
DDex supports trading in cryptocurrencies (BTC, BCH, ETH, XRP) and fiat currencies (SGD, USD, HKD, JPY). It also offers security token offerings (STOs) and custodial services.
Who can access DDex?
The exchange is exclusive to approved investors and institutional clients.
What are the benefits of MAS approval for DBS?
MAS approval allows DBS to expand its crypto services and cater directly to asset managers and corporates trading in digital payment tokens.
How has DDex performed since its launch?
DDex recorded SGD 180 million in trading volume in Q2 2021, a fivefold increase from Q1, with approximately 400 investors onboarded.
What is DBS’s vision for crypto services?
DBS aims to become a leader in the regulated crypto space by enhancing trading access, offering innovative solutions like STOs, and expanding its investor base.
Conclusion
DBS Bank’s achievements in the crypto sector underscore its commitment to innovation and leadership in digital finance. With MAS approval and the launch of 24/7 exchange operations, DBS is well-positioned to meet the growing demand for regulated crypto services.
As the bank continues to expand its offerings and onboard more investors, its role in shaping the future of Southeast Asia’s digital asset ecosystem will only strengthen.
To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.
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