Recently, it announced to set up a digital crypto exchange for institutional investors and accredited investors. Such investors can get access to security token offerings, digital currency exchange and digital custody services.
As part of security token offerings, investors can use 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.
This service is available through DBS Digital Exchange on which DBS offers cryptocurrency exchange to convert fiat currencies to digital currencies and vice versa. Available fiat currencies are SGD, USD, HKD and JPY, while supported cryptocurrencies include Bitcoin, Ether, Bitcoin Cash and XRP.
Another service introduced by DBS is the digital custody. This is an institution-grade digital custody solution to meet the increasing demand for secure custodial services tailored for digital assets under their prevailing regulatory standards. Leveraging DBS’ experience in providing world-class custody services for conventional assets, DBS’ digital custody services provide the custody of cryptographic keys that control digital assets on behalf of clients.
DBS Digital Exchange is approved as the Recognized Market Operator and regulated by the Monetary Authority of Singapore. Being the Recognized Market Operator, DBS is allowed to operate organized markets for assets such as shares, bonds and private equity funds. The Singapore exchange will hold a 10% stake in DBS Digital Exchange.
With that said, DBS Digital Exchange is expected to become the world’s first cryptocurrency exchange backed by a traditional bank.
Recognizing the KYC and AML risks related to cryptocurrencies trading, DBS implements its experience and technical solutions. It uses its own artificial intelligence and machine learning solutions to monitor and prevent financial crime, credit risks and other potential cyber risks.
It is expected that Singapore will strengthen its position as the leading international financial center.
DBS Digital Exchange is available upon request to institutional investors and accredited investors only. To be qualified as an accredited investor, it is necessary to have an annual income of at least S$300,000 (equaling to approx. US$ 225,000), or to have more than S$2 millions (approx. US$1,500,000) of personal assets or more than S$1 million (approx. US$750,000) of net financial assets.