DBS Bank of Singapore has officially announced the arrival of its digital assets exchange, with trading to start next week.
The DBS Digital Exchange is 10% owned by Singapore's SGX stock exchange. It will also provide tokenization of securities and other assets, as well as bank-grade custody for digital assets.
The new exchange will facilitate spot exchanges from fiat currencies to cryptocurrencies and vice versa, said Piyush Gupta, DBS Group CEO on a media call, Thursday.
“We are ready to begin crypto trading as early as next week,” said Gupta. “Security token offerings may take a month or two to get started – but in summary we are ready to go.”
The security token offering part of the digital exchange will comprise a regulated platform for the issuance and trading of digital tokens backed by financial assets, such as shares in unlisted companies, bonds and private equity funds.
“You can tokenize anything, you can tokenize a painting. But for now, we will be concentrating on financial assets.” Gupta said.
The third part is custody, which is said to be bank and institutional grade. This will be air-gapped cold storage that leverages all the existing cyber security tech at the bank, according to the CEO.
Interestingly, Swiss digital exchange SDX said this week it would also be building a crypto exchange in Singapore with Japan's SBI Holdings, slated for 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 venture," said Loh Boon Chye, CEO of SGX in a statement. "There are significant opportunities to bring trust and efficiency in price discovery to the global digital assets space. We look forward to working closely with DBS to advance Singapore’s standing as a multi-asset international financial center.”
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.