Bank of Singapore Sets Ambitious Digital Exchange Plans
The Singapore Group expects the number of members to trade cryptocurrencies on the new platform. And increase the number of customers by 20-30% over the next three years.
In an interview, the bank’s founders said that the digital exchange opportunity they created in December is already quite popular among corporate investors. Digital currency is widely used by investment firms and accredited individuals who manage significant assets.
According to the chairman of the largest bank in Asia, digital currency is slowly becoming popular among investors, and the number of consumers is growing very fast.
The bank has invested billions of dollars over the last eight years to improve the technology infrastructure, including digital investments.
DBS Digital Exchange offers customers asset tokenization, cryptocurrency trading, and digital security services in the crypto sector. The growing popularity of cryptocurrencies, in turn, has hampered banks as they try to balance customer interest with digital coins.
Standard Chartered is setting up a joint venture to create a cryptocurrency exchange platform in Europe and the UK. HSBC says it has no plans to offer digital currency to consumers. According to experts, DBS’s position will help customers make transactions and increase the volume of trade.
DBS, like other banks, seeks to increase fee income as net interest income declines amid low-interest rates. The Central Bank of Singapore has placed crypto business under a new regulatory framework. The new DBS mode will allow asset managers and companies to trade digital payment tokens through the exchange. Singapore Stock Exchange, 10% stake in the stock exchange.
According to the financial analyst, significant banks’ existence will help create an environment where risk is minimal, and consumers have guarantees for security. Binance said last week that it would limit its services in Singapore. This comes after the central bank told him about offering payment services.
DBS Trading offers customers trading services between Bitcoin, XRP, Etherium and US, Hong Kong Yen, and Dollar. According to the head of the DBS group, the bank’s goal was to create a digital asset value chain – all within the framework of a regulated banking franchise.
According to the head, the trend of companies has examined the options for financing through approved assets, in fact, the growing interest of private investors has led to progress in this direction.
DBS predicts its new business will bring considerable profits. In particular, it may generate $350 million by the end of next year.
No one knows in advance how much the expectations of the Bank of Singapore will be met. However, according to research conducted by executives and forecasts by financial analysts, digital currency is becoming so popular that the rapid growth in the number of investors is entirely natural.
Given that El Salvador has recognized Bitcoin as its legal tender, similar transactions are slowly becoming more acceptable to many countries.
The exact strategy is unknown how the Bank of Singapore plan will affect the overall picture; However, changes in the cryptocurrency sector will be inevitable.