The largest bank in Southeast Asia, DBS Group Holdings, said launching a crypto exchange would increase the scope for tokenization, digital currency custody and trading services for institutional investors. In a recent statement, the Singapore-based bank said the crypto exchange would allow for secondary trading of crypto assets and support asset tokenization as a method of raising capital. DBS Chief Executive Piyush Gupta said the market was ready for the formal banking sector to move on cryptocurrencies and digital assets, as reported by Reuters.
“We are on the cusp of a massive tokenization.”
The DBS chief executive believes that the time is right for this (digital assets) industry to increasingly find partnerships and sponsorship from the formal banking sector. There are thousands of different coins today being traded on different exchanges, and increasingly you are beginning to find that they are forming an important part of the asset allocation of wealth and private investors, he added. Piyush Gupta further noted, “We are on the cusp of a massive tokenization, and therefore you’ll find tokenization of all kinds of assets around the world, and I think more and more exchanges will start dealing with the tokenized assets.”
The new exchange would allow trading in four different tokens at the launch.
The new crypto exchange is all set to allow trading in four different tokens at launch, including bitcoin and ethereum, which between them account for up to 80% of the global crypto trading volume. The crypto exchange is also expected to list tokenized assets, providing access to capital for companies through public token offerings. The decision to launch the crypto exchange comes at a time when there is an increasing demand for digital currencies in Singapore and the wider region, particularly amongst institutional investors.
