Singapore’s DBS Bank has been approved by local regulators to offer digital currency services in the country, via its brokerage arm, DBS Vickers.
The move means the firm has been approved in principle from regulators to offer digital currency services to clients such as companies and asset managers. The authorization from the Monetary Authority of Singapore (MAS) comes under the provisions of the new Payment Services Act.
The act was introduced in Singapore in 2019, introducing a requirement for all digital payment services providers to be licensed in order to do business in the city-state.
When the license is officially approved, DBSV said its clients would be able to access digital payment token services directly through its exchange platform, DBS Digital Exchange (DDex).
Eng-Kwok Seat Moey, group head of capital markets at DBS, welcomed the decision to approve the licensing application, noting a growing interest among its clients for digital payment token services.
“We are pleased to have made steady progress on our digital asset ecosystem in the six months since we launched the DDEx last year. We have seen keen interest among asset managers and corporates for access to digital payment token services.”
In winning the approval, DBSV is among the first firms in Singapore to be given the green light by regulators. The company said it is continuing to work with regulators to fully meet the requirements of the country’s central bank.
The move comes after DBS issued a S$15 million (US$11.3 million) digital bond via a private placement on its DBS Digital Exchange back in May, the first of its kind to be handled by the exchange.
The approval will serve as an encouraging sign to other firms awaiting clearance from the central bank of Singapore, as the city-state moves towards a fully regulated digital payments sector.
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