Accredited investors can now trade crypto on DBS mobile app
Kelly Ng
DBS wealth clients who are accredited investors can soon trade cryptocurrencies via the bank’s mobile banking app DBS digibank.
Eligible clients can be onboarded from Friday (Sep 23), and they can start trading at the end of this month or in early October.
This broadens access to the DBS Digital Exchange to 100,000 more clients in Singapore who fit the criteria to be DBS Treasures accredited investors, the bank said.
Previously, crypto trading on DBS Digital Exchange was limited to corporate and institutional investors, family offices, and clients of the bank’s exclusive private banking tiers, including DBS Private Bank and DBS Treasures Private Client.
DBS Private Bank clients typically have at least S$5 million in assets under management, while DBS Treasures Private Client’s wealth management services are accessible with a minimum deposit and/or investment of S$1.5 million.
In contrast, the bar to qualify as an accredited investor is lower. Investors in this category with a minimum income of S$300,000 in the last 12 months, and/or at least S$2 million of net personal assets, and/or at least S$1 million of net financial assets can qualify.
“Broadening access to DDEx (DBS Digital Exchange) is yet another step in our efforts to provide sophisticated investors looking to dip their toes in cryptocurrencies with a seamless and secure way to do so,” said Sim S Lim, the bank’s group executive for consumer banking and wealth management.
Accredited wealth clients can trade Bitcoin, Bitcoin Cash, Ethereum and XRP via the app, with a minimum investment sum of US$500.
The total number of trades on DBS Digital Exchange doubled between April and June this year, with the quantity of Bitcoin bought rising nearly 4 times, DBS said.
Some crypto players see this as a positive development for the industry. Gerald Goh, co-founder and chief executive officer of digital asset manager Sygnum, said that given heightened concerns around counterparty risk, the sector would see more investor activity gravitate towards fully-regulated financial institutions such as banks, going forward.
Amber Group managing partner Annabelle Huang said DBS’s move underscores the legitimacy of crypto assets as a widely recognised asset class. “This is just the first step as more players look to develop new, innovative products that will supercharge the growth of crypto assets,” she said.
Chia Hock Lai, co-chair of Blockchain Association Singapore, called this a “slightly positive” move. “It is slightly positive that a mainstream bank (is) still proceeding with its crypto ambition despite the current crypto winter and general disapproval by the regulator on retail participation in crypto,” he said.
