Victor Ugochukwu · Dec 14, 2020 . 5min read
Singapore’s DBS Bank to launch Cryptocurrency Exchange
Singapore's DBS bank will launch the cryptocurrency exchange, DBS Digital Exchange. It will support the listing of BTC, ETH, XRP, and BCH.
By Komal Joshi · Dec 11, 2020 . 6min read
DBS, Singapore’s largest bank, has announced the launch of its cryptocurrency exchange. It will be operational by the end of next week. DBS Digital Exchange, the new cryptocurrency exchange, will be accessible for institutional and elite retail investors. It would be the world’s first cryptocurrency exchange supported by a conventional bank.
DBS Digital Exchange will enable Ethereum, Bitcoin, XRP, and Bitcoin Cash against four fiat currencies. It involves the Japanese Yen, the Singapore Dollar, the Hong Kong Dollar, and the US Dollar. The trading hours would be from 9 am-4 pm from Monday-Friday. Additionally, the bank has obtained in-principle support from Singapore’s central bank, the MAS (Monetary Authority of Singapore), for the exchange to manage organized markets for assets like bonds, shares, and private equity funds.
Singapore Exchange is a 10% shareholder of DBS Cryptocurrency Exchange.
The DBS Bank highlights that the Singapore Exchange (SGX) is a 10% shareholder in the new crypto exchange. Moreover, both DBS and SGX intend to secure enhanced liquidity management for Singapore’s burgeoning digital asset landscape. Supplementing the crypto trading services, the DBS Digital Exchange intends to promote SME’s and large corporations to boost funds via security token offerings. This indicates that companies from small and medium-sized enterprises to multinational corporations can raise capital by digitizing their financial assets like shares in unlisted companies, bonds, and private equity funds.
The new exchange is preparing to target institutional investors as of now. However, the elite retail investors suited under the central bank regulations as certified investors can also partake. While institutional investors, including financial institutes and market makers, can avail of the exchange undeviatingly, retail investors – have to be certified investors – have to obtain it through DBS Vickers Securities or DBS Private Bank.
For the uninformed, under the central bank regulations, certified investors are those whose yearly income is at least S$300,000 (US$224,000), or their personal assets surpass $2 million, or net financial assets pass S$1 million. Unlike other digital exchanges, DBS Digital Exchange will not hold the crypto assets. Moreover, the banking arm of DBS will hold the assets via an “institutional-grade” custodian.
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