Singapore's Biggest Bank DBS To Launch Cryptocurrency Trading And Custody

Singapore’s biggest bank DBS is entering the cryptocurrency space, reports said.

The country's largest retail and commercial bank is planning to launch a cryptocurrency exchange, a custody service and a security token offering platform, according to the cached version of a now-deleted webpage found by users and seen by Cointelegraph.

These three products, which will form DBS’ “digital asset ecosystem,” are set to initially support five major cryptocurrencies: Bitcoin, Ether, XRP, Bitcoin Cash and Ethereum Classic. The U.S. dollar, Hong Kong dollar, Singapore dollar and the Japanese yen will be supported initially, Cointelegraph reported.

With regards to digital asset custody, DBS bank will provide the service and not the exchange. The bank noted that its custodial services are recognized globally.

As for its security offering platform, small- and medium-sized enterprises, along with large corporations, would be allowed to issue security tokens.

As a bank, DBS is regulated by the Monetary Authority of Singapore. This, the bank said, meant it has a “distinct advantage” as clients can be assured of “institutional-grade security.”

The company is subject to anti-money laundering and combating the financing of terrorism (AML/CFT) regulations as required by Singapore and international bodies such as the Financial Action Task Force, the standard-setting body for AML/CFT.

The cached webpage said that the DBS Digital Exchange is bank-backed and would allow companies and investors to leverage its ecosystem of solutions to tap the potential of private assets and digital currencies, The Block reported.

DBS Digital Exchange would be available to institutional investors, while retail investors would need to access via a DBS member like the DBS Vickers Securities and DBS Private Bank.

Like the Chicago Mercantile Exchange (CME), DBS Digital Exchange has set trading hours of 9 a.m. to 4 p.m. from Monday to Friday and is closed during weekends.

When asked for comment by multiple publications, a spokesperson for DBS said the digital exchange has not yet received regulatory approvals. The cached webpage is no longer live as well.

"DBS’ plans for a digital exchange are still work in process and have not received regulatory approvals. Until such time as approvals are in place, no further announcements will be made," the DBS rep told The Block.

The news comes on the heels of PayPal's announcement that it will allow its 346 million users to buy and spend Bitcoin and a handful of other major cryptocurrencies.

Bitcoin has seen a wild increase and managed to sustain its ascent to $13,000 after a string of good news, including that of PayPal's. The benchmark cryptocurrency closed Tuesday at $13,783, its new 2020-high.