DBS Bank Initiated Asia’s First Trust Solution Backed by Bank for Cryptocurrencies

Sahaj  |  May 14, 2021

In a recent announcement, it has been revealed DBS Private Bank is going to start the first bank-backed trust solution of Asia for cryptocurrencies as demand for digital assets increases. As revealed in a statement, the latest offering will be allowing private banking clients to invest, take in custody, and manage these assets in a safe, secure, and structured manner.

DBS Bank to Launch Bank-Backed Cryptocurrencies Trust Service

DBS Group Holdings Ltd. said in a statement on Friday that it builds on the DBS Digital Exchange which was launched in the month of December, and offers the institutional investors and accredited investors a completely integrated tokenization, trading, and custody ecosystem for the digital assets.

In addition to this, it should be noted that the service is made available only to the cryptocurrencies that are hosted on the digital exchange such as Bitcoin, Ethereum, Bitcoin Cash, and XRP.

Moreover, the traditional financial firms are building up their crypto offerings as digital assets mature and soar in price, giving rise to client demand. 

As recently reported, the UBS Group AG is currently in the early stages of planning to provide crypto investments to wealthy clients.

Financial Giants Boosting Their Offerings

Goldman Sachs Group Inc. and Morgan Stanley are pumping their offerings, moreover, the bank has already joined JPMorgan Chase & Co. and Temasek in the creation of a blockchain payments platform.

Joseph Poon, the Group Head of DBS Private Bank said:

“Our trust structure allows clients to conveniently hold these assets, with a peace of mind that they will be safely managed and passed on to their intended beneficiaries.”

As of the first quarter, the digital exchange of DBS held $60 million in assets under custody, with the trading volumes up to 10-fold to $40 million.

Along with this, the digital exchange is working on efforts to conduct its first security token offering and to stretch the operating hours from the Asian time zones to round-the-clock.

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