DBS to Start Members-Only Digital Exchange for Cryptocurrencies – Bloomberg

DBS to Start Members-Only Digital Exchange for Cryptocurrencies – Bloomberg

DBS Group Holdings Ltd. will set up a digital exchange for cryptocurrencies for firms and wealthy clients, while allowing fund raising via asset tokenization on a platform run by the largest bank in Southeast Asia.
The planned setup is in partnership with Singapore Exchange Ltd., which will hold 10% in the new bourse, the Singapore-based lender said Thursday in an exchange filing. The new services include asset tokenization, secondary trading of digital assets including Bitcoin, and custody services, DBS said.
The Monetary Authority of Singapore, the central bank, gave an in-principle approval to the new bourse to trade assets from shares, bonds and private-equity funds, the bank said. Such regulatory blessing allows DBS to be among a handful of major banks to dabble in the crypto industry. While crypto is gaining institutional acceptance, the asset class still sees occasional cyber hacks and is still seen by many as associated with illicit fund flows.
“The time has come, the time is right for this industry to increasingly find partnership and sponsorship from the formal banking sector,” DBS Chief Executive Officer Piyush Gupta told a media briefing following the announcement. Trading will start as early as next week, he said.
The bank has “robust governance and controls” to monitor and prevent financial crime, he said.
Digital currencies have gained popularity this year as prices soar. Central banks from China to Europe to the U.S. are studying whether to create their own versions of digital currencies. Bitcoin is up about 150% and Ether has more than tripled since the start of the year. Meantime, institutions and investors are rapidly jumping into the space.

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