Singapore-headquartered DBS Bank today reported a full year of successful operations by its digital asset initiatives, including its members-only DBS Digital Exchange (DDEx).
The DDEx platform, which was launched in December 2020 and underpins the bank’s digital asset ecosystem, leverages blockchain to offer trading and custodian services for digital assets, including security tokens and cryptocurrencies. The platform provides an avenue for investors to invest in traditionally illiquid asset classes.
In an update shared with media, the bank revealed that the platform had recorded over S$ 1.1 billion ($815 million) in trading value for the 2021 financial year. Its digital assets under custody also sat at S$ 800 million at the end of December, a figure four times higher than recorded at the end of Q3.
The note cited its 24-hour, seven days a week service, which has been in operation since August, as being partly responsible for the increased momentum.
While Singapore has been pioneering digital developments in decentralised finance in Asia, the Monetary Authority of Singapore (MAS) has recently taken steps to curtail participation by the general public, given pricing volatility.
In response to whether this might impede the large-scale development of crypto asset trading, a spokesperson for DBS told FinanceAsia, “As Singapore deepens its expertise and stature as a global hub for digital assets, it is imperative that clear guardrails are established to encourage sustainable growth in the digital asset industry. MAS’ guidelines around the responsible promotion of digital payment services will help promote investor confidence and lay the foundation for a robust and credible digital asset industry in Singapore.”
The contact added that the exchange currently caters to corporate and institutional customers as well as accredited investors.
The platform listed its inaugural security token offering in the form of a S$15 million ($11 million) digital bond in June.
In December, Singapore-based digital payments provider, FOMO Pay, became among the first Digital Token Payment (DPT) licence holders to join the exchange. It was granted a DPT by MAS in September 2021.
In the announcement, Lionel Lim, CEO of DDEx, shared, “With more customers searching for a trusted gateway to access the digital asset and cryptocurrency economy, we have seen strong interest in the services offered by DDEx over the past year. These include our integrated fiat trading capabilities for more seamless buying and selling of cryptocurrencies, as well as the institutional-grade digital custody solutions… Our digital asset ecosystem operates under strong regulatory frameworks and in full compliance with prevailing licensing regimes.”
In other digital developments, in October, the bank’s brokerage arm, DBS Vickers (DBSV), became the first bank-backed brokerage to receive formal approval from MAS under the Payment Services Act 2019 to provide digital payment token services as a Major Payment Institution. This enables DBSV to support trades in digital payment tokens through its DDEx platform.
