Singapore’s Largest Bank DBS Launches Its Crypto Exchange
The trading platform will allow users to trade four crypto assets – Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and XRP – against the Singapore dollar (SGD) and the Hong Kong dollar (HKD), Japanese yen (JPY), and US dollar (USD).
DBS Bank’s most dominating shareholder is Temasek Holdings, Singapore’s second-largest sovereign wealth fund, owning 29% of DBS shares.
A Different Approach from PayPal
DBS certainly took a different approach from Paypal, which allowed cryptocurrency use to trade on its platform. DBS, instead, launched its trading exchange, a significant step towards the new crypto era.
Based on the original page’s data, the platform is primarily intended to support SMEs and large companies in raising capital by creating and selling digital securities and assets.
Its participants can trade, convert, and withdraw fiat currencies without using stablecoins such as Tether to purchase digital assets.
DBS digital assets are poised to become the future of the digital economy of the future. With DBS Digital Exchange, digital exchanges supported by banks, companies, and investors can now use an integrated solution ecosystem to tap into the private market and digital currency’s vast potential.
DBS Digital Exchange will use DBS Bank’s parent company services for depositing customer funds. The Bank has implemented “DBS Digital Custody” on its website, and an institution-level custody solution designed specifically for storing digital assets.
In the FAQ section, DBS wrote that its digital exchange would immediately be available to institutional investors, including financial institutions and professional market makers. On the other hand, retail investors should have access to the platform through DBS members such as DBS Vickers Securities (Singapore) and DBS Private Bank.
Unlike other crypto exchanges on the market today, DBS Digital Exchange does not allow trading on weekends. And on weekdays, it will limit trading hours from 9 am to 4 pm, similar to the stock market.
Bitcoin Adoption Booms Along with its Value
The DBS disclosures come nearly a month after Taimur Baig – DBS chief economist – publicly recognized Bitcoin as a people’s hedge against worrying dollar outflows.
Billionaire Paul Tudor Jones, asset management firm StoneRidge, and companies such as MicroStrategy and Square have invested heavily in the Bitcoin sector to replace their cash reserves effectively. PayPal, the global payments giant, has also announced an invasion of the cryptocurrency sector.
Bitcoin is up more than 80 percent in 2020 – and more than 250 percent after the Federal Reserve introduced a policy of unlimited bond-buying and interest rates near zero in March 2020.
Each event results in a higher Bitcoin price on the spot and derivatives market. With further suggestions from DBS to take over the cryptocurrency mainstream and after the Second Economic Agreement, Bitcoin’s likelihood of adding more value to its market has sharply increased.