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DBS announced that it will establish a digital exchange with the Singapore Exchange (SGX) with a 10% stake, allowing investors to take advantage of a fully integrated tokenization, trading and custody ecosystem for digital assets. Crypto trading activities are said to start next week.
They shared that the platform will operate during Asian business hours from 9:00 am to 5:00 pm.
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Loh Boon Chye, CEO of SGX, said:
Loh boon chye
“We are excited to apply our strengths in market infrastructure and risk management to this company. There are significant opportunities to bring confidence and efficiency in price discovery to the global digital asset space. We look forward to working closely with DBS to further Singapore’s position as a multi-asset international financial center. “
With DBS Digital Exchange, DBS will leverage blockchain technology to provide an ecosystem for fundraising through asset tokenization and secondary trading of digital assets, including cryptocurrencies.
This includes Security Token Offerings, which is a regulated platform for the issuance and trading of digital tokens backed by financial assets, such as shares in unlisted companies, bonds, and private equity funds.
It will also feature a digital currency exchange where cryptocurrency trading can be performed that will facilitate spot exchanges of fiat currencies to cryptocurrencies and vice versa. The DBS Digital Exchange will offer exchange services between four fiat currencies (SGD, USD, HKD, JPY) and four of the more established cryptocurrencies, namely Bitcoin, Ether, Bitcoin Cash and XRP.
The crypto exchange will also feature digital custody services with an institutional-grade digital custody solution to meet the growing demand for secure custody services designed for digital assets under its current regulatory standards. Leveraging DBS’s expertise in providing conventional asset custody services, DBS’s digital custody services provide custody of cryptographic keys that control digital assets on behalf of clients.
The announcement follows approval in principle by the Monetary Authority of Singapore to recognize DBS Digital Exchange as a Recognized Market Operator, allowing it to operate organized markets for assets such as stocks, bonds and private equity funds.
Piyush Gupta, Group Chief Executive Officer, DBS, said:
Piyush gupta
“The exponential pace of asset digitization offers immense opportunities to reshape capital markets. To make Singapore even more competitive as a global financial center, we have to prepare to welcome the widespread adoption of digital assets and currency trading. DBS is committed to accelerating the development of a fully integrated ecosystem to facilitate this. We believe this is the first integrated offering of its kind, differentiating itself in many ways. “
DBS Digital Exchange is a members-only exchange for institutional and accredited investors who will benefit from DBS’s deep capabilities in multiple areas. Piyush further added that he expected the exchange to be profitable by next year.
These include deep deal building experience, leadership in the capital markets space in key Asian markets, and a bank-wide corporate network, which DBS Digital Exchange can leverage as potential issuers.
The investor base and distribution network established by the bank through DBS Private Bank and DBS Vickers, enables DBS Digital Exchange to tap into a large and ready pool of potential investors.
DBS also has extensive experience in providing safe and reliable custody services, which will be expanded to provide institutional-level custody for digital assets with strong cybersecurity controls. These controls have proprietary artificial intelligence and machine learning solutions applied by DBS to complement risk and control processes to monitor and prevent financial crime, credit risk, and other potential cyber risks.
Featured Image: (Left to Right) Loh Boon Chye, CEO of Singapore Exchange; Michael Syn, Head of Equities at Singapore Exchange; Eng-Kwok Seat Moey, Group Head of Capital Markets at DBS; and Piyush Gupta, CEO of DBS
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