DBS, the largest bank in Southeast Asia, has announced a series of milestones for its crypto business. Its brokerage arm has received preliminary approval from the Monetary Authority of Singapore (MAS), the central bank of Singapore, and its crypto exchange will be operational 24/7 to meet the growing demand for cryptocurrency.
DBS sees “strong interest among asset managers and companies” for cryptocurrencies
Southeast Asia’s largest bank, DBS, made several announcements on Thursday. First, the bank’s brokerage arm, DBS Vickers (DBSV), “has received general approval from the Monetary Authority of Singapore (MAS) under the Payment Services Act (PS Act) to offer digital payment token services as a major payment institution. ”
Noting that DBS is one of the first financial institutions to receive such approval, the company is now working to meet the central bank’s requirements for a full license, stating:
After licensing, DBSV, as a member of DBS Digital Exchange (Ddex), can support asset managers and companies directly in trading digital payment tokens via Ddex.
Second, DBS Bank announced that its crypto exchange will be up and running “around the clock” from August 16. The exchange is currently only operational during Asian trading hours to allow fine-tuning of processes and protocols.
The bank also noted that its crypto exchange, which is a members-only exchange for institutional and accredited investors, has “picked up well” since it was launched late last year. In May, the bank announced that its exchange’s crypto trading volume had increased ten-fold. In the same month, a trust service for cryptocurrencies was also introduced.
DBS Digital Exchange currently offers trading services between four fiat currencies (SGD, USD, HKD and JPY) and four cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH) and XRP.
The bank announced:
Around 400 investors had been accepted for trading on Ddex by the end of June 2021. Ddex recorded nearly SGD 180 million [$132.49 million] Total trade value in the second quarter of 2021, more than five times the trade value of the previous quarter. DBS has more than SGD 130 million in digital assets in its custody services.
The bank added that it is “building its pipeline of potential Security Token Offerings (STOs),” noting that the exchange “listed its first STO in June in the form of a SGD 15 million digital bond”.
Eng-Kwok Seat Moey, Group Head of Capital Markets at DBS, said:
We have noticed great interest among asset managers and companies in access to digital payment token services and, with the general approval of the DBSV under the PS Act, we are well positioned to meet this growing demand … We are confident of doubling our investor base until the end of the year.
“This could add volume to Ddex in the coming months and, together with Ddex’s 24/7 operations, help accelerate Ddex’s growth,” he said.
What do you think of DBS Bank expanding its crypto business to meet growing customer demand? Let us know in the comment section below.
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