DBS has announced that it would create a digital exchange with a 10 percent stake owned by Singapore Exchange (SGX), allowing investors to tap into a completely integrated digital asset tokenization, trading and custody ecosystem. It is said that crypto-trading operations will commence as early as next week.
During Asian business hours, the site will be available from 9:00 a.m. to 5:00 p.m.
Loh Boon Chye, SGX’s CEO, 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 center.”
Utilization of Blockchain Technology
DBS would utilize blockchain technologies through the DBS Decentralized Exchange and include infrastructure for fundraising through asset tokenization and secondary digital asset trading, like cryptocurrencies.
This involves Protection Token Offers, a managed marketplace for the issuing and selling of financial asset-supported digital tokens, such as unlisted business stock, bonds, and private equity funds.
Piyush Gupta, Group Managing Director of DBS, stated,
“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 member-only exchange of retail and certified investors that will gain in many ways from the deep capability of DBS.
These involve strong experience in transaction origination, leadership in the space of capital markets across main markets in Asia, and a bank-wide corporate network that can be tapped as possible issuers by the DBS Digital Exchange.
Via DBS Private Bank and DBS Vickers, the bank’s existing investor base and distribution network help the DBS Digital Exchange to access a wide and ready pool of potential investors.
DBS already has considerable expertise in delivering safe and efficient custodial facilities, which will be enhanced with stringent cybersecurity safeguards to include institutional-grade custody for digital properties.
In order to complement risk and control systems to track and avoid financial fraud, credit threats, and other possible cyber risks, these controls have patented artificial intelligence and machine learning technologies implemented by DBS.
It will also have a digital currency platform where the trade of cryptocurrency will take place to enable spot trades from fiat currencies to cryptocurrencies and vice versa.
Exchange services between four fiat currencies (SGD, USD, HKD, JPY) and four of the most known cryptocurrencies will be provided by the DBS Digital Exchange, namely Bitcoin, Ether, Bitcoin Cash and XRP.
Safe Custodial Services
In order to satisfy the increasing need for safe custodial services customized for digital assets within their prevalent regulatory requirements, the crypto exchange would also feature digital custody services with an institution-grade digital custody solution.
DBS’ digital custody services include the custody of cryptographic keys that govern digital properties on behalf of consumers, exploiting the expertise of DBS in delivering custody services for traditional assets.
The declaration follows the acceptance of the Monetary Authority of Singapore, in theory, to acknowledge DBS Digital Exchange as a Recognised Market Trader, enabling it to manage structured asset markets such as stock, bonds and private equity funds.
