In Singapore, DBS Bank’s brokerage arm has received “in principle” approval from the country’s financial regulator to begin offering cryptocurrency services to asset managers and corporations.
According to a press statement on Thursday, 12th August, the financial entity received in-principle approval from the Monetary Authority of Singapore (MAS) to provide trading services for digital payment tokens.
For example, starting Monday, DBS Digital Exchange (DDEx), a members-only platform for institutional and professional investors, would be open 24 hours a day, seven days a week in order to “respond to growing trading volume in the face of escalating client demand.”
Indeed, the change will strengthen members’ ability to seize opportunities and manage risks linked with cryptocurrency market price volatility. The exchange, which had a combined trading volume of about $180 million in the second quarter of this year, formerly functioned exclusively during Asian trading hours.
Requirements for licensing
Vickers stated that it is making the necessary inquiries to ensure compliance with the MAS’s licensing conditions. Strictly speaking, the city-state enacted its payment act in 2019, which requires all-digital payment service companies to obtain a license before operating.
Vickers will be allowed to actively help asset managers and enterprises in trading digital payment tokens via the DDEx, which Vickers is a member of, once permitted by the MAS. Eng-Kwok Seat Moey, head of capital markets at DBS, remarked that Vickers’ in-principle approval and DDEx’s enhanced hours might hasten the exchange’s expansion.
“We are confident of doubling our investor base by the end of the year. This bodes well for our ability to provide integrated solutions across the digital asset value chain, notably in the form of security token offerings (STOs), leveraging DBS’ expertise in deal origination to tokenization, listing, distribution, trading, and custody.”
Ms. Eng-Kwok
Additionally, she stated: “Asset managers and organizations have expressed a strong desire for access to digital payment token services.” Indeed, DBS has been building a portfolio of potential STOs, with DDEx issuing its maiden STO in June in the form of a $15 million digital bond. Finally, DBS announced that it was a custodian of more than $130 million in digital assets and that by the end of June, about 400 investors had registered to trade on DDEx.
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