During the ongoing Singapore Fintech Festival, DBS announced launching a digital currency exchange. According to the bank, the upcoming exchange will allow institutional and elite retail investors to trade digital currencies. However, investors are restricted to trading only four major cryptocurrencies, Bitcoin, Ether, XRP, and Bitcoin Cash.
Unlike other cryptocurrency exchanges, DBS will be restricted to trading cryptocurrencies from 9 am to 4 pm Monday to Friday. The bank also allows investors to invest and trade the four cryptocurrencies listed above against four fiat currencies as follows; US Dollar, Singapore Dollar, Japanese Yen, and Hong Kong Dollar.
DSB doesn’t stop trading the top cryptocurrencies against four fiats; it allows security token offering for small-medium-big enterprises. The security token offering, also known as STO, will allow projects or firms to tokenize physical assets like cars, real estate, corporate stock, etc., to raise capital to fund innovative projects.
The Singapore Exchange (SGX) holds a 10 percent shake of the anticipated exchange. They are said to have already received in-principle approval from Singapore’s central bank, the Monetary Authority of Singapore, for the exchange to operate organized markets for assets such as shares, bonds, and private equity funds.
According to Gupta,
“We bring a large origination capability from our capital markets presence. We bring a substantial distribution capability, which includes into our own private bank and wealth base as well as institutional client base. And because we are an established custody house, we’ve built a lot of capabilities and knowledge and experience in managing the custody function as well,” he said. “So leveraging the power and strength of DBS bank allows us to build volume, liquidity and scale in this exchange in a manner which a lot of other bespoke exchanges find difficult to do.”
By implication, Gupta maintained that “integrating the offering” was significant because it would include issuance, investing, and securities tokens trading. Gupta said current cryptocurrency exchanges “tend to lack the possibility that being part of a banking group can bring to this activity.”
Recall that DBS, one of the biggest banks in Asia, seemed to be waking up to digital assets’ solutions. They referred to Bitcoin as a Ponzi scheme three years ago and are now coming up with a digital currency exchange that is not only accepting bitcoin but is accepting other cryptos as well as allowing an STO.
Okereke has a passion for researching blockchain and cryptocurrency. He enjoys creating long form educational content to inform others on the opportunities in this space.