DBS plans crypto exchange

A digital currency exchange backed by Singapore's largest lender DBS is in the works, although the bank is still in the process of seeking regulatory approval.

A version of the DBS Digital Exchange's webpage - that was made public for a short while on Tuesday but later taken down - said the platform will list four top cryptocurrencies, Bitcoin, Ether, Ripple, and Bitcoin Cash, against multiple fiats, including the Singapore dollar, US dollar, Hong Kong dollar, and Japanese yen.

According to an archived version of the webpage, the exchange will allow companies - small and medium-sized enterprises and large corporates alike - to raise capital, via security tokens, through the digitisation of their securities and assets. This will also allow issuers to reach a wider base of investors that might not traditionally have access to such tokens. But to be clear, this is meant to raise private capital from qualified investors.

Security tokens are a type of cryptocurrency tied to actual assets, such as real estate, a car, or a corporate stock. Some consider them to be safer as they are subject to strict regulations.

The now-defunct page read: "Companies searching for a regulated option to raise private capital from qualified investors can now tap on DBS Digital Exchange to securitise real assets into tradeable digital tokens."

Unlike most digital exchanges, the DBS Digital Exchange will not hold any of the crypto assets.

They will instead be kept with the banking arm of DBS via an "institutional grade" custodian dubbed the DBS Digital Custody, which is "specially tailored for safekeeping digital assets", according to the archived page.

In response to queries on the exchange, a spokesperson at the bank said: "DBS's plans for a digital exchange are still work in process, and have not received regulatory approvals. Until such time as approvals are in place, no further announcements will be made."

The bank declined to comment on questions relating to fees, eligibility and when it might expect to receive regulatory approval.

Various communities on messaging apps Telegram and WhatsApp were abuzz with the news by the end of the day, while platforms reporting on the crypto space, like Bitcoin.com, CoinDesk, and Crypto Global, had also ran stories about it.

Since 2017, Singapore has ranked among the world's top three markets for initial coin offerings, with the United States and Switzerland. Three of the top 10 crypto derivatives exchanges are headquartered here, including Huobi, Bybit and Phemex.

The Monetary Authority of Singapore brought crypto businesses into the regulatory fold this year, requiring that all such firms are required to first register and then apply for a licence to operate in the jurisdiction.