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Source: DBS
DBS reported today strong traction for the first full year of operations of its digital asset ecosystem, anchored by its members-only DBS Digital Exchange (DDEx), one of the world’s first bank-backed digital exchanges.
In FY2021, DDEx recorded over SGD 1.1 billion in trading value. Momentum picked up significantly after DDEx went operational 24/7 in August 2021, with trading values in the fourth quarter coming in at close to SGD 800 million – five times higher than that in the previous quarter.
In another indicator of strong momentum, DBS’ digital assets under custody as at 31 December 2021 was more than SGD 800 million, which was four times higher than the amount recorded at the end of the third quarter.
DDEx, a members-only exchange, has provided corporate and institutional investors, accredited investors, and family offices who bank with DBS, a robust and regulated platform to tap into the growing digital asset economy.
DDEx has set itself apart from the competition with its membership-only business model, where it provides other brokerages and asset houses with a safe and secure solution to access the cryptocurrency and digital payment tokens market[1]. DDEx continues to attract a wide range of DBS’ corporate and institutional customers with its integrated suite of end-to-end solutions across the digital value chain, including payments, settlements, secondary trading, and custody. It has in the past year onboarded established banking and financial institutions, and even other digital asset exchanges to its platform.
DDEx has also been welcoming a growing number of DBS accredited investors and family offices who prefer the platform for its frictionless fiat-cryptocurrency trading experience and institutional-grade custodial services.
As one of the world’s few digital exchanges backed by an established bank franchise, DDEx can avail to participants the adjacent strengths of DBS’ broader digital asset ecosystem, including digital asset custody services and deal origination capabilities for Security Token Offerings (STOs).
Lionel Lim, CEO of DBS Digital Exchange, 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 we offer through DBS. Our digital asset ecosystem operates under strong regulatory frameworks and in full compliance with prevailing licensing regimes, providing our customers which further assurance and confidence when they trade with us.”
Lim added, “We are not resting on our laurels and in the coming year, we will be scaling our business to serve a larger target pool of customers, leveraging DBS’ digital asset ecosystem and deep investor base. We also aim to list more digital payment tokens and STOs for trading. Our sustainable growth trajectory will help grow the market for digital assets in the region, which in turn contributes to deepening Singapore’s expertise and stature as a global hub for digital assets.”
Throughout 2021, DBS has marked a series of significant milestones in its digital asset ecosystem, including:
• In October, DBS Vickers (DBSV), the brokerage arm of DBS Bank, became the first bank-backed brokerage to receive formal approval from the Monetary Authority of Singapore under the Payment Services Act 2019 to provide digital payment token services as a Major Payment Institution. This enabled DBSV, as a member of DDEx, to directly support asset managers and companies to trade in digital payment tokens through DDEx.
• In August, DDEx became operational round-the-clock, enabling DDEx’s participants to trade on the bourse at any time.
• In June, DDEx listed its inaugural Security Token Offering in the form of an SGD 15 million digital bond.
• In May, DBS Private Bank rolled out Asia’s first bank-backed trust solution for cryptocurrencies.
[1] Most digital exchanges today adopt a participant-focused business model, which calls for the exchange itself to have direct interface in managing end-users.
Financial Services
