DBS, the famous bank of Singapore, plans to expand its cryptocurrency services to top-tier clients across Asia. The bank wishes to expand its current digital asset exchange to larger Asian clients in particular. Currently, on digital exchanges, DBS has almost 1000 members.
The wealthy clientele base sums to nearly 300,000 in number. Such news comes during a time when the cryptocurrency market continues to stagger under turmoil. If you want to invest or trade in cryptocurrencies, go to this official website.
Message from the CEO of DBS
The chief executive of DBS, Piyush Gupta, is yet of another opinion. He said in a public statement that they wish to be a global cryptocurrency hub. They are too worried about their domestic population getting burned with such a speculative asset class.
It reflects that such an industry-wide bloodbath has, in turn, proved few things. The established and well-regulated financial institutions should go for cryptocurrency services. Also, start-ups that embrace this industry more should do it too.
DBS’s brokerage arm got granted a crypto license by MAS. Such a license lets the bank provide access to DBS Digital Exchange to elite and institutional clients by invitation. Currently, this exchange has around 1000 members. Yet the service will soon get extended to a lot of people via the bank’s mobile banking app.
The MAS granted the bank’s brokerage arm a cryptocurrency license in 2021. It gave institutional clients and rich ones invitation-only access to its digital exchange. He said that the crypto services of the bank would only be available to their 300000 Asian clients.
Such a move will make sure that 300,000 premium clients of the bank across Asia get access to this service. Not only them but also accredited investors, exchanges, funds, and private banks will gain access via the app.
From then, access to the digital exchange was restricted to wealthy and institutional clients by invitation. As per Gupta, DBS will be offering services via its official mobile banking app.
The exchange will not only make this service accessible to a lot of customers. It will too make this entire process hassle-free and fast for its users. Following this decision of beginning the cryptocurrency exchange, April-June, the overall number of trades on the digital exchange of DBS increased by over double. The quantity of Ether sold on this platform increased by 65 percent. The total BTC volume traded increased by four times.
It will let the bank offer its services to more customers. This largest bank in Singapore has assets that amounted to $686 billion as of last year December. It signed away nearly $1 billion to begin other cryptocurrency ventures before deciding to launch one of its own.
Offering cryptocurrency will get a better outcome
According to the CEO of DBS, established and regulated financial institutions need to offer products such as digital trading assets to retail investors.
The bank confirmed that it would focus on growing its cryptocurrency exchange business this year. It left a hint that retail investors will be unable to trade digital assets. DBS postponed plans to offer cryptocurrency trading to retail investors. They cited all technical challenges and regulatory opposition.
He believes that the cryptocurrency market downturn demonstrated that any well-established and regulated financial institution could provide digital asset products or services apart from start-ups. He also said that such institutions are vital enough for establishing guardrails. It would lead to better results.
Piyush Gupta said that people look to thus to be the leader in this space and to push all boundaries in order to continue. The plans of the bank in which Temasek, the investment group, holds a stake of under 30 percent, came during a time when the country is fighting in its strive to be a cryptocurrency hub. The country’s economy is dependent on financial services along with trading. They believe that innovation can keep its economy relevant. Adhering to this, Ravi Menon, managing director of MAS, said in the last week that the regulator would take steps to shield retail investors. Yet the digital asset strategy of Singapore was indeed on the right path.