Key highlights:
- DBS Bank of Singapore launches the first crypto exchange that is supported by a traditional bank
- DBS Digital Exchange will support Bitcoin, Ethereum, XRP, and Bitcoin Cash
- DBS Digital Exchange will start assets tokenization in 2021
DBS Bank, the biggest bank in Singapore, is in the process of launching a cryptocurrency exchange. The platform will list major cryptocurrencies, including Bitcoin, Ethereum, XRP, and Bitcoin Cash. These coins will be traded against the US dollar, the Singapore dollar, the Japanese yen, and the Hong Kong dollar.
Called DBS Digital Exchange, the business will be one of the first crypto exchanges worldwide that is backed by a traditional bank. Only institutional and accredited investors will be able to trade on this platform. The news is significant, and many investors consider DBS Bank’s move as a legitimization of cryptocurrencies.
Assets tokenization on the DBS Digital Exchange
Other than trading cryptocurrencies in this exchange, enterprises can tokenize assets such as real estate and raise capital via this mechanism. It is essential for small and medium corporations, and they can digitize their assets by using the DBS Digital Exchange platform.
The platform will issue securities tokens, and users can trade, issue, and invest the tokens on the exchange. DBS bank will bring its experience in infrastructure and risk management to crypto exchanges, something we don’t often see in the world of conventional crypto exchanges.
DBS will bring security and legitimacy to crypto assets
DBS Digital Exchange is different from other crypto exchanges. The exchange will keep cryptos by using its banking arm, and the custody process will be institutional-grade. According to DBS Bank, the recently growing demand for cryptocurrencies was the catalyst for its exchange launch.
The DBS Digital Exchange will be a combination of legacy and modern systems. Legacy systems bring their experience to new designs in this model, then DBS Digital Exchange is an innovative and revolutionary model.
DBS Digital Exchange brings institutional-grade security, and its crypto custody will be very different from conventional exchanges. At first, Singapore-based banks were not so friendly to crypto startups because of KYC and AML regulations. Now, however, the situation is different, and DBS’s presence in the space will make a big impact on the position of cryptocurrency in Singapore. Singapore is an essential financial hub in the region, and it wants to maintain its competitive power.
