Singapore’s largest bank, DBS, is ready to launch a new digital asset exchange next week. The exchange will provide tokenization and custody services to users, the firm said in a press release on 10 December.
The so-called DBS Digital Exchange will offer services to institutional and accredited investors, and will facilitate spot exchanges between fiat and cryptocurrency. Initially, the platform will support four fiat currencies — the Singapore dollar, Hong Kong dollar, Japanese yen, and USD — that will be tradable against Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Ripple (XRP). The CEO of DBS Group, Piyush Gupta, said in a statement:
“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.”
The exchange will not only offer crypto trading services, but a regulated security token offerings platform as well. With it, users will be able to tokenize assets such as shares in unlisted companies, bonds, and private equity funds. The DBS Digital Exchange will also offer an “institution-grade digital custody solution”, that will leverage the bank’s existing cyber security technology.
The announcement was made after the Monetary Authority of Singapore (MAS) gave the exchange its “in-principle approval” to recognize DBS Digital Exchange as a “Recognised Market Operator”. This recognition will allow the exchange to operate “organised markets” for assets such as shares, bonds and private equity funds. The exchange is also backed by Singapore’s largest derivatives exchange, SGX, which has a 10% stake in the platform.
DBS Group is not the only one set on launching a digital asset platform in Singapore. Earlier this week, Tokyo-based SBI Holdings and Switzerland’s principle stock exchange SIX announced their plans for a joint venture in Singapore. The platform is set for a 2022 launch — after MAS gives it the green light — and will offer listing, trading, and custody of cryptocurrency.