DBS bank gets go ahead from Singapore authorities to provide crypto services
DBS Bank’s brokerage arm in Singapore has gained “in principle” clearance from the country’s financial authority to begin selling crypto services to asset managers and businesses.
As it happened the financial entity acquired in-principle clearance from the Monetary Authority of Singapore (MAS) to provide trading services for digital payment tokens, according to a press release on Thursday, 12th August.
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For instance, DBS Digital Exchange (DDEx), a members-only platform for institutional and professional investors, will be open 24 hours a day, seven days a week starting Monday, in order “to respond to increased trading volume amidst escalating customer demand.”
Indeed, the move will improve members’ capacity to capitalize on opportunities and manage risks associated with fluctuations in cryptocurrency spot prices. The exchange, which had a total trading value of close to $180 million in the second quarter of this year, had previously only operated during Asian trading hours.
Licensing requirements
The bank stated that Vickers is making the appropriate inquiries to meet the MAS’s licensing criteria. Strictly speaking, the city-state approved its payment act in 2019, requiring all digital payment service providers to be licensed in order to operate.
Once licensed by the MAS, Vickers will be able to actively assist asset managers and corporations in trading digital payment tokens through the DDEx, of which Vickers is a member.
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Eng-Kwok Seat Moey, DBS group head of capital markets, stated that Vickers’ in-principle approval and DDEx’s expanded working hours might expedite the exchange’s expansion.
Ms. Eng-Kwok confirmed:
“We are confident of doubling our investor base by the end of the year. This bodes well for our ability to provide integrated solutions across the digital asset value chain, notably in the form of security token offerings (STOs), leveraging DBS’ expertise in deal origination to tokenization, listing, distribution, trading, and custody.”
She added:“We have seen keen interest among asset managers and corporations for access to digital payment token services.”
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As a matter of fact, DBS has been compiling a portfolio of possible STOs, with DDEx launching its first STO in the shape of a $15 million digital bond in June.
Lastly, DBS stated that it had more than $130 million in digital assets under its custodial services, and by the end of June, about 400 investors had registered to trade on DDEx.
Source: Finbold
