The DBS Financial institution digital trade will begin buying and selling crypto “subsequent week”
DBS Bank of Singapore has officially announced the arrival of its digital asset exchange. Trading is scheduled to start next week.
The DBS Digital Exchange is 10% owned by the SGX exchange in Singapore. It will also enable the tokenization of securities and other assets, as well as the safekeeping of bank-grade digital assets.
The new exchange will facilitate spot exchanges from fiat currencies to cryptocurrencies and vice versa, said Piyush Gupta, CEO of DBS Group, in a media call on Wednesday.
Four fiat currencies (SGD, USD, HKD, JPY) can be traded against four of the most established cryptocurrencies that cover 70-80% of the market, namely bitcoin, ether, bitcoin cash and XRP, Gupta added.
"We are ready to start crypto trading as early as next week," said Gupta. "It may take a month or two for security token offerings to become available, but in summary, we're ready."
The security token, which offers part of the digital exchange, includes a regulated platform for the issuance and trading of digital tokens that are backed by financial assets such as shares in unlisted companies, bonds and private equity funds.
"You can tokenize anything, you can tokenize a painting," said Gupta. "But for now we're going to focus on financial assets." Said Gupta.
The third part is custody, which is known as the banking and institutional class. According to the CEO, this will be an air-gap cold room that uses all of the bank's existing cyber security technology.
Interestingly, the Swiss Digital Exchange SDX announced this week that it will also set up a crypto exchange in Singapore with the Japanese SBI Holdings, which is scheduled to launch in 2022.
The DBS exchange will only be open to institutional clients and accredited investors, Gupta said.
"We are excited to apply our strengths in market infrastructure and risk management to this company," said Loh Boon Chye, CEO of SGX, in a meeting. “There are significant opportunities to bring confidence and pricing efficiency to the global digital asset space. We look forward to working closely with DBS to build Singapore's reputation as an international multi-asset financial center. "