DBS is setting up a members-only digital exchange that will enable institutional investors and accredited investors to tap into a fully integrated tokenisation, trading and custody ecosystem for digital assets.
With the DBS Digital Exchange, DBS will leverage blockchain technology to provide an ecosystem for fund raising through asset tokenisation and secondary trading of digital assets including cryptocurrencies.
This includes 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.
There is also cryptocurrency trading that will facilitate spot exchanges from 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 most established cryptocurrencies — Bitcoin, Ether, Bitcoin Cash and XRP.
Also included is an institution-grade digital custody solution to meet the increasing demand for secure custodial services tailored for digital assets under their prevailing regulatory standards. Leveraging DBS’ experience in providing custody services for conventional assets, DBS’ digital custody services provide the custody of cryptographic keys that control digital assets on behalf of clients.
The announcement of this initiative follows the in-principle approval by the Monetary Authority of Singapore to recognise DBS Digital Exchange as a Recognised Market Operator, allowing it to operate organised markets for assets such as shares, bonds and private equity funds.
“The exponential pace of asset digitalisation provides immense opportunities to reshape capital markets,” said Piyush Gupta, Group CEO of DBS. “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.”
Further, Singapore Exchange (SGX) will take a 10% stake in the DBS Digital Exchange. Both parties will explore opportunities to deepen the liquidity, scale and growth of Singapore’s capital markets in the growing area of digital assets and digital currencies.
Loh Boon Chye, CEO of SGX, said they were ready to apply their 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.”