Famous Singapore bank, DBS, is now planning to expand crypto services to major clients across Asia. The affluent customer base amounts to approximately 300,000 people.
This news comes at a time when the crypto market continues to reel under turmoil.
Piyush Gupta, the managing director of DBS, however, is of a different view which reflects that this industry-wide bloodbath has in turn proven that established and regulated financial institutions should opt for the services of crypto with start-ups that have been more industry-friendly.
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 clients by invitation.
The exchange currently has around 1,000 members, but the service will soon be expanded to more people through the DBS bank’s mobile banking app.
The move will ensure that 300,000 DBS premium customers across Asia have access to the service. Not only them, but accredited investors, private banks, exchanges and funds will also have access through the app.
Developments related to the DBS exchange
The exchange will not just make the service accessible to more customers, but will also make the whole process seamless and fast for its users.
Shortly after the decision to launch the crypto exchange, the period between April and June, the total number of transactions on the DBS Digital exchange had more than doubled.
The amount of Ethereum sold on the platform increased by 65% and the total volume of Bitcoin traded increased fourfold.
DBS is Singapore’s largest bank with assets of $686 billion (US$488 billion) as of December 2021. It divested about $1 billion to start other crypto ventures before deciding to launch his.
Supposedly offering crypto can get better results
According to Gupta, well-established and regulated financial institutions could offer digital assets, not just start-ups. He also believes that these institutions are important enough to establish “safeguards” that would lead to “better results”.
Gupta also felt that,
People expect us to be a pioneer in the field and to keep pushing the boundaries.
DBS’s plans in which reported investment group Temasek holds less than a 30% stake came at a time when Singapore is struggling with its drive to become a crypto hub.
Singapore, a country whose economy depends on financial services and trade, believes that only innovation can keep its economy relevant.
In line with the same, MAS chief executive Ravi Menon said last week that the regulator
would take steps to protect retail investors, but Singapore’s digital asset strategy was indeed on the right track.