DBS rolls out the first bank-backed crypto trust solution in Asia

By: Jinia Shawdagor
Jinia Shawdagor
Jinia is a cryptocurrency and blockchain enthusiast based in Sweden. She loves everything positive, travelling, and extracting joy and happiness from… read more.
on May 14, 2021
  • The crypto trust will run on the DBS Digital Exchange (DDEX), which launched in December 2020.
  • Reportedly, the solution will let investors custodize, manage, and invest in up to four cryptos.
  • Per DBS’ Group Head, this solution seeks to serve the expanding population of crypto adopters.

DBS, a Singapore-based private bank has launched the first-ever bank-backed crypto trust in Asia. The bank reached this milestone by leveraging its fully-owned subsidiary, DBS Trustee. Through this launch, the bank seeks to offer its private banking clients an opportunity to invest, custodize, and manage up to four digital currencies in an organized manner.

According to the report, this solution will run on the DBS Digital Exchange (DDEX), which went live in December last year. By leveraging DDEX, the bank’s institutional investors and accredited investors will get to work with an all-inclusive platform for crypto trading, tokenization, and custody.

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With the new offering, DBS will let such investors trade Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and XRP (XRP) against four fiat trading pairs. These are the Singapore dollar, the US dollar, the Hong Kong dollar, and the Japanese yen.

Offering crypto investors peace of mind

The Group Head of DBS Private Bank, Joseph Poon touts the solution, saying that the DBS trust structure lets clients hold cryptocurrencies conveniently. He added that the solution would offer clients peace of mind by guaranteeing the safe management of their crypto with a promise to pass the coins on to the right beneficiaries.

Seconding Poon, DBS’ Regional Head of Family Office, Wealth Planning, and Insurance Solutions, Lee Woon Shiu said,

By keeping their DDEX-hosted digital assets in a trust administered by professional licensed trustees such as DBS Trustee, our clients can be assured that the succession planning of their digital asset wealth is being taken care of by experienced professionals.

DDEX performed well in Q1 2021 despite being fairly new. Reportedly, the exchange held S$80 million (£42.6 million) with trading volumes increasing tenfold to hit S$40 million (£21.3 million). During this period, the exchange served 120 clients. DBS also unveiled that DDEX is looking to conduct its first security token offering soon, and expand operating hours to cover global users.

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