DBS Digital Exchange as a key player in digital asset space

What sets DBS Digital Exchange apart is that it is a members-only exchange

The members-only exchange is one of the world’s first bank-backed digital exchanges and offers a regulated platform for the digital asset economy.

Digital assets and cryptocurrency are all the rage now, and investors are Interest is strongest in DDEx’s integrated fiat trading capabilities for more seamless buying and selling eagerly jumping in this novel means of getting higher returns. Singaporean investors, of course, are not to be left behind in this craze. Interest in investing in cryptocurrency, for example, is on an upward trajectory. According to a study by consumer insights company Milieu, nine in 10 Singapore investors plan to increase their crypto investments in 2022, with almost one-third of the 1,000 investors surveyed already holding crypto-related investments.

It’s a reality reflected in the success enjoyed by DBS Digital Exchange (DDEx), which reported a whopping S$1.1b in trading value just a year after it debuted, and only six months after the exchange went fully operational.

The members-only exchange is one of the world’s first bank-backed digital exchanges. Through DDEx, DBS offers corporate and institutional investors, accredited investors, and family offices who bank with DBS a regulated platform to tap into the growing digital asset economy. of cryptocurrencies, as well as the institutional-grade digital custody solutions offered through the DBS Bank, according to Lionel Lim, CEO of DBS Digital Exchange. Momentum notedly picked up significantly after DDEx went operational 24/7 in August 2021, with trading values in the fourth quarter coming in at close to S$800m–five times higher than that in the previous quarter, according to data released by DBS Digital Exchange. What sets DDEx apart is that it is a members-only exchange. “DDEx has set itself apart from the competition with its membershiponly business model, where it provides other brokerages and asset houses with a safe and secure solution to access the cryptocurrency and digital payment tokens market,” DBS said in a statement. Innovation is another key to its success. Just this past year, DDEx did not just onboard other established banking and financial institutions, but even other digital asset exchanges.

Regulating the decentralised

Despite the high interest, digital assets space still is incredibly volatile, lending to its reputation as being “high-risk, high-reward.” For example, it is common to see the value of cryptocurrencies, such as Bitcoin, dramatically rise and fall. In mid-April 2021, Bitcoin prices reached an all-time high of $60,000 in crypto exchange platforms, according to data compiled by Blockchain.com Just a couple of months later, its price plummet over 50%, falling as low as $29,795 in July. It’s a risk recognised by central banks around the world. In Singapore, local regulator MAS recently issued public guidelines banking the public marketing of cryptocurrency to discourage its trade. This reportedly caused crypto ATMs around the city to close down. It’s a move that DBS and DBS Digital Exchange welcomed. “As Singapore deepens its expertise and stature as a global hub for digital assets, it is imperative that clear guardrails are established to encourage sustainable growth in the digital asset industry,” the DBS spokesperson told Asian Banking & Finance in an exclusive correspondence. The spokesperson added that MAS’ guidelines around the Lionel Lim responsible promotion of digital payment services will help promote investor confidence and lay the foundation for a robust and credible digital asset industry in Singapore. In a separate media note, DDEx CEO Lionel Lim stated that DDEx operates under strong regulatory frameworks and in full compliance with prevailing licensing regimes. This provides DDEx customers with further assurance and confidence when they trade with the platform, the DDEx CEO said. Interest is As for the future of DDEx? strongest Naturally, there’s only one way for the in DDEx’s exchange to go: up. integrated “[In] the coming year, we will be fiat trading scaling our business to serve a larger capabilities for target pool of customers, leveraging more seamless DBS’ digital asset ecosystem and deep buying and investor base,” Lim said. “We also aim selling of to list more digital payment tokens cryptocurrencies and STOs for trading.”