DBS Bank collaborates with SGX Singapore Exchange on Digital Assets Exchange
December, 2020, the DBS Bank of Singapore announced a new cryptocurrency exchange division called DBS Digital Exchange which will also enable secondary trading of digital assets such as shares in unlisted companies, bonds, and private equity funds.
“The exponential pace of asset digitalization 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” said Piyush Gupta, Group CEO, DBS at the launch of the new exchange.
However, the DBS Digital Exchange will only be available for institutional investors and accredited investors to get a foothold in a fully tokenization ecosystem for digital assets. DBS also aims for a deep integration into the Asian banking system, offering customers exchange services between four fiat currencies, namely Singapore Dollars, U.S. Dollars, Hong Kong Dollars, and the Japanese Yen and four of the most established cryptocurrencies, namely Bitcoin, Ether, Bitcoin Cash and XRP.
The DBS Digital Exchange is backed by the Singapore’s largest derivatives and asset exchange SGX by providing tokenization of securities and other assets, as well as bank-grade custody for digital assets. Besides the collective goal of both parties to explore opportunities to deepen the liquidity, scale, and growth of Singapore’s capital, SGX will also take a 10% stake in this venture. Loh Boon Chye, CEO of SGX, said, “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 Centre.”
DBS’ Digital Exchange is already approved by the Monetary Authority of Singapore (MAS) as a Recognized Market Operator which allows DBS to operate organized markets for assets such as shares, bonds and private equity funds.
Another step in the right direction for digital assets and tokenized securities.