Blockchain

DBS Launches Crypto Services With SGX Holding a 10% Stake

DBS announced that it will set up a digital exchange with Singapore Exchange (SGX) holding a 10% stake, enabling investors to tap into a fully integrated tokenisation, trading and custody ecosystem for digital assets. Crypto trading activities is said to start as early as next week.

They shared the platform will be operating during Asian trading hours from 9:00 am to 5:00pm.

Loh Boon Chye, CEO of SGX, said,

Loh Boon Chye

“We are excited to apply our strengths in market infrastructure and risk management to this venture. There are significant opportunities to bring trust and efficiency in price discovery to the global digital assets space. We look forward to working closely with DBS to advance Singapore’s standing as a multi-asset international financial center.”

With the DBS Digital Exchange, DBS will leverage blockchain technology to provide an ecosystem for fund raising through asset tokenisation and secondary trading of digital assets including cryptocurrencies.

This includes Security Token Offerings which is a regulated platform for the issuance and trading of digital tokens backed by financial assets, such as shares in unlisted companies, bonds and private equity funds.

It will also feature a digital currency exchange where cryptocurrency trading that will facilitate spot exchanges from fiat currencies to cryptocurrencies and vice versa can take place. The DBS Digital Exchange will offer exchange services between four fiat currencies (SGD, USD, HKD, JPY), and four of the most established cryptocurrencies, namely Bitcoin, Ether, Bitcoin Cash and XRP.

The crypto exchange will also feature digital custody services with an institution-grade digital custody solution to meet the increasing demand for secure custodial services tailored for digital assets under their prevailing regulatory standards. Leveraging DBS’ experience in providing custody services for conventional assets, DBS’ digital custody services provide the custody of cryptographic keys that control digital assets on behalf of clients.

The announcement follows the in-principle approval by the Monetary Authority of Singapore to recognise DBS Digital Exchange as a Recognised Market Operator, allowing it to operate organised markets for assets such as shares, bonds and private equity funds.

Piyush Gupta, Group CEO, DBS, said,

Piyush Gupta

“The exponential pace of asset digitalisation provides immense opportunities to reshape capital markets. For Singapore to become even more competitive as a global financial hub, we have to prepare ourselves to welcome the mainstream adoption of digital assets and currency trading. DBS is committed to accelerating the development of a fully integrated ecosystem to facilitate this. We believe that this is the first of its kind integrated offering, which is differentiated in many ways.”

The DBS Digital Exchange is a members-only exchange for institutional and accredited investors whom will benefit from DBS’ deep capabilities in multiple areas.

These include deep expertise in deal origination, leadership in the capital markets space across key markets in Asia and a bank-wide corporate network, which the DBS Digital Exchange can tap on as potential issuers.

The bank’s established investor base and distribution network through DBS Private Bank and DBS Vickers, enables the DBS Digital Exchange to tap on a large and ready pool of potential investors.

DBS also has extensive experience in providing secure and reliable custodial services, which will be extended to provide institutional-grade custody for digital assets with robust cybersecurity controls. These controls have proprietary artificial intelligence and machine learning solutions applied by DBS to complement risk and control processes to monitor and prevent financial crime, credit risks and other potential cyber risks.

Piyush further added that he expected the exchange to be profitable by next year.

Featured image: (From L to R) Loh Boon Chye, CEO of Singapore Exchange; Michael Syn, Head of Equities at Singapore Exchange; Eng-Kwok Seat Moey, Group Head of Capital Markets at DBS; and Piyush Gupta, CEO of DBS