Editors Note: This article comes fromBlocklike（ID：iblocklike）, reprinted by Odaily with authorization.
Editors Note: This article comes from
, reprinted by Odaily with authorization.
Many scholars in the field of digital currency and investors in the industry have noticed that the DBS Bank digital trading platform provides four currencies for digital currency transactions, including Singapore dollars, US dollars, Hong Kong dollars, and Japanese yen. Through these four fiat currencies, DBS Banks ambitions in the field of digital assets in Southeast Asia have been revealed.
The news that DBS Bank announced the official launch of a digital trading platform is called a positive signal, and it may become a channel worth looking forward to.
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Mention digital securities issuance (STO) again
On December 10, 2020, Singapore time, DBS Bank officially reported that DBS Bank announced the official launch of a digital trading platform, and will create a comprehensive digital asset tokenization, trading and custody ecosystem for institutional customers and qualified investors.
In the official announcement, DBS Bank stated: Through this digital trading platform, the bank will use blockchain technology to provide asset tokenization and secondary market transactions including digital assets such as cryptocurrencies, forming an ecosystem for fundraising , which includes:
Security Token Offering – a regulated platform for the issuance and trading of digital tokens backed by financial assets, such as shares of unlisted companies, bonds and private equity funds.
Digital Currency Transactions - Cryptocurrency transactions that enable two-way spot exchange from fiat currencies to cryptocurrencies. The DBS digital trading platform will provide mutual exchange services for four currencies (SGD, USD, HKD, JPY) and four of the most established cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple).
Digital Custody Services - An institutional-grade digital custody solution designed to meet the growing demand for safe custody services for digital assets under current regulatory standards. DBS Digital Custody Services builds on its experience in providing world-class custody services for traditional assets, escrowing the cryptographic keys that govern digital assets on behalf of clients.
Among them, the issuance of security tokens (also known as digital securities issuance), that is, STO (Security Token Offering), which has been heatedly discussed before.
Theoretically speaking, STO puts the token financing of blockchain projects in a legal and compliant framework. Under this framework, the issued ST has the nature of traditional securities. When Token meets the definition of securities, it will also be subject to the Securities Law of the local jurisdiction, which is a legal and compliant public offering of tokens.
This represents the real equity ST, and to some extent has become the main orientation of the digitization of traditional financial assets. Compared with stock issuance, programmable is one of STs advantages. Due to the current regulatory situation, compliance issues have become a constraint for the development of the industry.
According to reports, at present, the Monetary Authority of Singapore has approved in principle the recognition of DBS Digital Exchange as a recognized market operator, allowing it to operate an organized market for assets such as stocks, bonds and private equity funds.
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Little Grayscale in Southeast Asia?
The Singapore dollar, US dollar, Hong Kong dollar, and Japanese yen are among the four fiat currencies DBS uses in digital transactions. The tone of this structure is focused on Southeast Asia, with a stable structure and a clear purpose. Both the U.S. dollar and the Hong Kong dollar have a very strong linkage with Southeast Asian assets. At the same time, the Japanese yen has made a good supplement in terms of stability.
The new trading platform has also brought more discussions to the digital asset industry.
Huang Haiguang, founder of Cabin VC, commented on this: Hong Kong is the largest offshore RMB market in the world. Behind the Hong Kong dollar is the RMB. Offshore RMB can enter the trading market through the Hong Kong dollar.
He analyzed and pointed out: This also shows that DBS has strong ambitions in the digital asset trading business, and also has the intention of taking advantage of Hong Kongs status as an Asian financial center. DBS has been deeply involved in the Chinese market for many years and is very aware of Chinas digital currency regulation. Policies and China’s power and potential in the global digital asset trading market.”
Wu Tong, a well-known scholar in the field of blockchain and digital economy and deputy director of the CECBC Blockchain Special Committee, said in an interview with Blocklike: DBS Banks move this time is to launch the cryptocurrency trading platform Bakkt with the (U.S.) Intercontinental Exchange. It is similar. In the jurisdictions of these two places, this kind of behavior is acceptable. The advantages of large financial institutions in digital asset exchanges are obvious, including the number of customers, safety factor, and ability to communicate with regulators There are obvious advantages.”
With the Hong Kong dollar as one of the currencies on the other side, we can see that: first, Hong Kong and Singapore have very close exchanges in terms of trade and finance, and are important financial centers in the Asia-Pacific region; second One is that Hong Kong’s laws and policies also allow such events. In Hong Kong’s primary market, digital assets can enter the regulatory sandbox, and in the secondary market, they can also conduct related transactions. Different business types involved Licenses mainly include licenses 1, 4, 6, and 9.”
Ye Kai, an expert in Token economic design and a partner of Silk Road Digital Capital, believes: STO is a product supported by clear financial assets. The digital trading platform launched by DBS Bank can refer to iSTOX, Singapores first compliant digital securities trading platform. The two are the same. So the first stock or product that can be traded should still be based on real estate.
At the same time, he expressed to Blocklike his expectations for DBS’s digital custody services in Southeast Asia: “It is worth noting that the custody of digital assets is very important. Directly buying and selling digital currency spot may not be the mainstream. The next step of hosting is more likely to have a Grayscale model.”
According to public data, as the leading banking institution in Southeast Asia, DBS Bank currently manages about US$170 billion in assets, and continues to update quarterly reports on the digital currency field. Prior to this, DBS Bank had already obtained the Recognized Market Operator license approved in principle by the Monetary Authority of Singapore. Represents the authorization of DBS Bank to engage in organized market operations in assets such as stocks, bonds and private equity funds.
However, according to Lianhe Zaobao, DBS CEO Piyush Gupta publicly stated to the media that the digital asset exchange has no plans to open it to retail investors in the near future. At this stage, institutions are still the main camp for DBS to conduct digital asset transactions.
For Singapore, this is not the first digital asset trading platform in its country. The iSTOX mentioned by Ye Kai is the first comprehensive digital asset platform under supervision in the local area.
