MAS Set to License DBS’ Brokerage Arm for Digital Payment Token Servicesby Fintech News Singapore August 12, 2021
DBS Vickers (DBSV), the brokerage arm of DBS Bank, has received in-principle approval from the Monetary Authority of Singapore (MAS) under the Payment Services Act (PSA) to provide digital payment token services.
DBSV is one of the first few financial institutions to obtain such an approval following that of Independent Reserve, an Australian cryptocurrency exchange.
The brokerage is working through the necessary follow-ups with a view towards meeting MAS’ requirements for a license.
Once licensed, DBSV, as a member of the DBS Digital Exchange (DDEx), will be able to directly support asset managers and companies to trade in digital payment tokens through the exchange.
Additionally, DDEx will soon operate round-the-clock to enable its members to trade on the exchange at any time, enhancing their ability to seize opportunities and manage risks arising from changes in cryptocurrency spot prices.
The exchange previously operated only during Asian trading hours to allow for processes and protocols to be fine tuned.
DDEx said in a statement that it has onboarded 400 investors as of June 2021 and aims to double its investor base by the end of the year.
The exchange has also recorded close to SGD 180 million in total trading value in Q2 2021, more than five times the value traded in the previous quarter. DBS has over SGD 130 million in digital assets in its custodial services.
At the same time, DBS is building up its pipeline of potential Security Token Offerings (STOs). DDEx listed its inaugural STO in June in the form of an SGD 15 million digital bond.
Eng-Kwok Seat Moey, Group Head of Capital Markets at DBS, said,
“We have seen keen interest among asset managers and corporates for access to digital payment token services, and with DBSV receiving in-principle approval under the PS Act, we are well-placed to meet this growing demand.
This bodes well for our ability to provide integrated solutions across the digital asset value chain notably in the form of STOs, leveraging DBS’ expertise in deal origination to tokenisation, listing, distribution, trading and custody.”