DBS Bank’s brokerage arm in Singapore is licensed to provide digital token payment services
Singapore multinational bank DBS announced yesterday that its broker arm DBS Vickers (DBSV) has received regulatory approval from the Monetary Authority of Singapore (MAS). According to the country’s Payment Services Act, the brokerage was basically given approval to provide digital payment token services.
The news makes the DBSV one of the first financial institutions to receive such approval from MAS. The Singaporean regulator gave the Australian Digital Asset Exchange Independent Reserve the same approval in principle last week.
The approval of the DBSV is an important step in the DBS strategy for digitizing assets. Last year, the bank launched the DBS Digital Exchange (DDEx), which gives institutional and accredited investors access to digital assets and participation in Security Token Offerings (STOs). The MAS license will allow DBSV to support these investors directly.
DBS custody services now manage more than SGD 130 million (US $ 96 million) in digital assets. Meanwhile, DDEx’s growth has been explosive as its trading volume more than quintupled in the second quarter from the first quarter, reaching nearly SGD 180 million ($ 133 million). The exchange has also gained around 400 investors since it was launched.
Eng-Kwok Seat Moey, Group Head of Capital Markets at DBS, said: “We are pleased to have made steady progress in our digital asset ecosystem in the six months since DDEx was launched last year, and this is reflected in our trading and custody activities. We have seen a keen interest among asset managers and companies in accessing digital payment token services, and since DBSV has received approval in principle under the PS Act, we are well positioned to meet this growing demand. “
Although DDEx has previously only operated during Asian trading hours, it will be operational around the clock from Monday to allow users to better manage risks and take advantage of opportunities arising from changes in the price of the cryptocurrency. Moey believes this, along with MAS approval, could further increase the volume of the exchange in the coming months.
He added, “We are confident that we will double our investor base by the end of the year. This bodes well for our ability to provide integrated solutions along the entire digital asset value chain, especially in the form of STOs that leverage DBS’s expertise in transaction generation through to tokenization, listing, distribution, trading and custody. This will add to Singapore’s ambitions to be a digital asset hub in Asia. “