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Government-controlled banks are about to enter the cryptocurrency market? Learn about “DBS Bank Singapore” in 3 minutes
On October 27, Singapore’s largest commercial bank “DBS Bank of Singapore” (DBS) announced its entry into the cryptocurrency market and the launch of the DBS Digital Exchange.
As the largest commercial bank in Singapore, DBS Bank’s announcement of the launch of a digital asset exchange undoubtedly aroused great concern in the cryptocurrency market. Who is “DBS Bank Singapore”? Why has it become the first financial institution to announce plans to launch digital asset trading?
According to public information, DBS Bank Singapore is controlled by the Singapore government and was established in 1968. It has been rated as “Asia’s Safest Bank” by Global Finance for four consecutive years, and ranked in the middle of this year’s “Top 500 Bank Brand Value Global” Ranked 36th (brand value of 8.473 billion US dollars).
On the other side of the financial world, DBS Bank has been paying attention to digital assets and their impact on the currency market. In August of this year, the bank released an in-depth report “Digital Currency: Public and Private, Current and Future Currency”, which summarized the advantages of digital currency and the market demand for the asset in 30 pages. This also explains why DBS Bank is optimistic about cryptocurrency and is the first to launch related transaction services.
In this report, DBS Bank pointed out that “in 2020, the global digital payment transaction volume will reach 440 million US dollars. The total transaction value in the next four years is expected to grow at a compound annual growth rate of 17%, and it is expected to reach US$830 billion. The value of digital payment transactions in Singapore will increase from US$15 billion in 2020 to US$21 billion in 2024 (compound annual growth rate of 9%).”
The bank believes that the digital payment and currency fields have made great strides in recent years. 2020 will be a milestone in the history of digital finance, and asserted that “cryptocurrency will continue to exist, and cash and traditional financial forms will not be eliminated soon”.
In fact, DBS Bank’s “first trial” in digital asset trading is inseparable from the local market environment in Singapore. Compared with other regions, Singapore has a more relaxed attitude towards cryptocurrency. It was once known as “it is expected to develop into the world’s first country that fully accepts cryptocurrency”.
According to a report released by CoinGecko last year, Singapore leads the world in ICO and IEO issuance. Statistics show that Singapore completed 228 ICOs in 2018, with a total financing of US$1.6 billion. By 2019, the succession of ICO by IEO has become the most popular financing method, and Singapore once again leads the world, conducting 72 IEOs and raising a total of US$130 million.
Attached is the key information about DBS Digital Exchange:
1. Provide cryptocurrency trading services, currently supporting four types of digital assets: BTC, ETH, BCH and XRP;
(Supported fiat currencies include SGD, Hong Kong dollar, USD and JPY)
2. Plans to launch STO products to support qualified investors to tokenize securities assets into tradable digital tokens through DBS Digital Exchange;
3. DBS Digital Exchange only provides digital currency trading services and does not hold encrypted assets;
(DBS Digital Custody preserves encrypted assets and the bank has deployed an institution-level custody solution DBS Digital Custody)
4. If individual investors want to trade on DBS Digital Exchange, they first need to become a member through DBS Vickers Securities (Singapore) Pte Ltd/DBS Private Bank before they can enter the trading platform.