The popular DBS Bank in Singapore is now planning to expand the scope of cryptocurrency Services For discerning clients all over Asia. The wealthy client base is around 300,000 in number.
This news comes at a time when the cryptocurrency market continues to teeter in turmoil.
However, Piyush Gupta, CEO of DBS, has another view reflecting that this industry-wide bloodbath in turn proved that well-established and regulated financial institutions should opt for crypto services alongside startups that were more incubating the industry.
The brokerage arm of DBS has been granted a crypto license by the Monetary Authority of Singapore. This license allowed the Bank to offer access to DBS Digital Exchange to institutional and elite customers by invitation.
The exchange currently has around 1,000 members, but the service will soon be expanded to include more people through the DBS Bank mobile banking app.
This move will ensure that 300,000 premium DBS customers across Asia will gain access to the service. Not only them, but accredited investors, private banks, stock exchanges and funds will also get access through the app.
DBS Exchange related developments
The exchange will not only make the service more accessible to more customers, but also make the whole process smooth and fast for its users.
Shortly after the decision to start a cryptocurrency exchange, between April and June, the total number of trades on the DBS digital exchange more than doubled.
The amount of Ethereum sold on the platform increased by 65% and the total volume of Bitcoin in circulation increased four times.
DBS is the largest bank in Singapore with assets of $686 billion (US$488 billion) as of December 2021. It signed about $1 billion to start other crypto ventures before deciding to launch one of its own.
Introducing cryptocurrency should lead to better results
According to Gupta, well-established and regulated financial institutions can offer digital assets, not just start-ups. He also sees these institutions as important enough to erect “protective barriers” that will lead to “better outcomes”.
As Gupta saw it,
People look to us to be pioneers in space and to continue pushing boundaries.
The plans for DBS, in which investment group Temasek holds less than 30% stake, came during a time when Singapore was struggling in its quest to become a cryptocurrency hub.
Singapore, a country whose economy is based on financial services and trade, believes that only with innovation can its economy remain fit.
According to the same, MAS Managing Director Ravi Menon said last week that the regulator
It will take steps to protect retail investors, but Singapore’s digital asset strategy has already been on the right track.