In October, DBS, the largest bank in Singapore, announced its plans to establish a new branch called DBS Digital Exchange.
Cooperation of DBS and SGX
DBS on Thursday confirmed the venture. It also turned out to be backed by SGX, Singapore’s largest derivatives exchange. SGX owns a 10% stake in the cryptocurrency platform.
The stock exchange will only be available to accredited institutional investors. They will be able to trade Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and XRP. In addition, DBS Digital Exchange will be a tokenization platform for assets such as unlisted stocks, bonds and private equity funds.
It will be deeply integrated into the Asian banking system, allowing customers to deposit and buy cryptocurrencies with Singapore dollars, US dollars, Hong Kong dollars and Japanese yen. DBS will also offer fiduciary services for the storage of digital currencies on behalf of clients.
DBS Group CEO Piyush Gupta said:
For Singapore to become even more competitive as a global financial hub, we need to prepare for mainstream digital asset and currency trading.
SGX CEO Loh Boon Chye added:
Cooperation with the Singapore Exchange on this venture will contribute to increasing the liquidity and scale of digital asset markets in Singapore. There is significant scope for increasing confidence and efficiency in pricing in global digital asset markets
Singapore is becoming an important center for institutional cryptocurrency trading. Financial giants such as SBI plan to create a competitive offer for DBS, while existing platforms such as OKCoin are setting up local branches.
Banks and cryptocurrencies
In late July, the United States Office of Currency Controller (OCC), an independent office of the US Treasury Department, issued a public letter explaining that US banks and federal savings associations have the right to hold cryptocurrency assets for their clients.
A moment later, the OCC published a new position on the cryptocurrency market. He defined stablecoins in it. According to the institutions, this is a concept “Refers to an asset-backed cryptocurrency such as a fiat currency including the US dollar or other foreign currency.” OCC’s opinion has allowed banks to hold stablecoin deposits that are based on the USD.