DBS Digital Exchange is seeing robust demand from corporate investors, accredited individuals and investment firms that manage the fortunes of wealthy families. DBS’s foray in the crypto business come after its CEO Piyush Gupta steered the bank to invest billions of dollars to upgrade its technology infrastructure over the past eight years as it embraced cloud computing and digitized its services. DBS Digital Exchange bills itself as the world’s only bank-backed full service digital bourse – offering cryptocurrency trading, asset tokenization and digital custody services, in a crypto sector where investor trust is still low.
Soaring popularity of cryptocurrencies has posed a problem for mainstream banks as they try and balance clients’ interest in digital coins with regulatory concerns about their risks. Singapore’s central bank brought crypto businesses under a new regulatory framework that came into effect in January 2020. DBS’ brokerage arm has received an-principal approval under the new regime, which will allow it to directly support asset managers and companies to trade in digital payment tokens through the bourse. The Singapore Exchange (SGXL.SI) has a 10% stake in the bourse. DBS expects its new businesses, including the digital exchange and a carbon exchange to bring in total revenue of S$350 million ($260 million) by the end of next year.