DBS Bank’s brokerage division, DBS Vickers, has received in-principal approval from the Monetary Authority of Singapore (MAS) to provide digital token trading services, the bank said in a statement on Thursday, 12th August, straitstimes.com reports.
Therefore, the company will undergo further changes. They will also affect the DBS Digital Exchange (DDEx), a platform for institutional and accredited investors. Starting on 16th August, the platform will be open 24 hours a day, “to cater to increasing trading volume amidst growing client demand,” DBS said in a statement.
“The move will enhance members’ ability to seize opportunities and manage risks arising from changes in cryptocurrency spot prices,” the bank added.
Previously, the exchange, which had a total trading volume of about $180 million (~£130 million) in the second quarter of this year, operated only during Asian trading hours.
The bank noted that Vickers is developing an action plan to meet the MAS requirements in order to obtain a licence. Once licenсed, Vickers will be able to directly support asset managers and companies in digital payment tokens trading through the DDEx, where Vickers is one of the members.
DBS group head of capital markets Eng-Kwok Seat Moey said that Vickers’ in-principle approval and the new DDEx working hours could accelerate the exchange’s growth.
“We are confident of doubling our investor base by the end of the year. This bodes well for our ability to provide integrated solutions across the digital asset value chain notably in the form of security token offerings (STOs), leveraging DBS’ expertise in deal origination to tokenisation, listing, distribution, trading and custody,” she said.
DDEx had its first STO listing in June in the form of a $15 million (~£11 million) digital bond. Meanwhile, DBS is building up its portfolio of potential STOs (security token offerings).
“This will contribute to Singapore’s ambitions to be a digital asset hub in Asia,” Eng-Kwok added.
As for the end of June, around 400 investors had joined DDEx to trade on the exchange. DBS also has more than $130 million (~£93 million) in digital assets in custodial services, the bank said.
DBS Vickers has received the necessary digital payment token services licence from Singapore’s authorities. Very soon the exchange will operate 24 hours with the goal to double their investors on the platform.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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