The largest bank in Singapore, DBS, has announced that it will extend the use of cryptocurrency services to 300,000 of its more affluent customers in the Asian region. With the Monetary Authority of Singapore’s cryptocurrency license, DBS Bank’s brokerage division can offer its DBS Digital Exchange to institutional and affluent customers.
According to DBS Chief Executive Piyush Gupta, the bank will soon offer the service through its DBS mobile banking app, despite the exchange’s current membership of around 1,000. This will provide access to 300,000 of its affluent Asian clients, including private banks and accredited investors.
According to Gupta, the app will streamline and simplify the client experience, enabling DBS to offer more to clients.
What Led to the Development?
Gupta, CEO of DBS since 2009, said the bank, which had total assets of $686 billion (USD $488 billion) in December 2021, gave up nearly $1 billion to new cryptocurrency exchanges before opening its own.
Between April and June, the DBS Digital Exchange saw a more than doubled number of transactions, a 65% increase in Ethereum sales, and an almost three-fold increase in Bitcoin transactions.
In Gupta’s opinion, the collapse of the cryptocurrency market highlights the need for established and regulated financial institutions to offer digital assets-related goods and services.
However, Gupta added that “regulators do not necessarily perceive it that way,” despite his change of mind and belief that DBS can provide crypto goods and services to clients safely and successfully.
In the wake of numerous high-profile bankruptcies of local companies, such as Terraform Labs and Three Arrows, Singapore is working hard to establish itself as a global center for cryptocurrencies.