Singapore’s largest bank, DBS Bank, had officially announced the launch of digital currency exchange. The new digital exchange platform is only reserved only for institutional and accredited investors. The bank also confirmed that the Singapore stock exchange will take a 10% stake in the new trading platform. Both the Singapore stock exchange and DBS Bank will work together to deepen the liquidity as well as grow the capital markets in the country while developing the cryptocurrency space.
Singapore Stock Exchange’s 10% Stake In DBS Digital Exchange
The new platform called the DBS Digital Exchange will be a regulated platform for issuing and trading of security tokens. It will support the trading of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Ripple (XRP). The platform will also support the trading pairs for fiat currencies including SGD, USD, HKD, and JPY.
In the announcement, Piyush Gupta, Group CEO of DBS, said:
“The exponential pace of asset digitalization provides immense opportunities to reshape capital markets. For Singapore to become even more competitive as a global financial hub, we have to prepare ourselves to welcome the mainstream adoption of digital assets and currency trading.”
Loh Boon Chye, CEO of SGX, said:
“We are excited to apply our strengths in market infrastructure and risk management to this venture. There are significant opportunities to bring trust and efficiency in price discovery to the global digital assets space.”
World’s First Crypto Exchange to be Backed by a Bank
DBS Digital Exchange will be the world’s first cryptocurrency exchange to be backed by a traditional bank. Besides, cryptocurrency trading, the platform will also offer digital assets custody under regulatory standards.
DBS Bank’s plan to launch a digital exchange was initially leaked in October, when its official website accidentally went live, before being approved by the country’s central bank. The bank made a public webpage with details on the offerings, however, it was deleted shortly after receiving public attention.