Singapore’s DBS Bank’s trading division has gained in-principle clearance from the country’s banking authority to begin cryptocurrency services to investment firms and businesses. According to a news statement issued by DBS Vickers on Thursday, the Monetary Authority of Singapore (MAS) approved the trade under the country’s Payment Services Act.
The city-state approved payment legislation in 2019, mandating all digital payment service providers to be licensed before they operate. When the bank’s license is approved, it will be able to provide direct support to managers and businesses through its DBS Digital Exchange (DDex), which will provide them access to its digital payment token services.
Eng-Kwok Seat Moey group head of capital markets at DBS said,
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 May DBS issued an SGD 15 million digital bond in its primary security token offering. The DBS Digital Bond comes with a six-month tenor and coupon rate of 0.60% per annum, which was done through private placement.
The DBS Digital Bond strictly complies with the present bond legal framework, providing investors with the same legal protections to protect their rights as traditional bonds. DBS is one of the first financial institutions to gain MAS clearance, according to the company. The bank also stated that it is taking the required steps to comply with MAS standards.
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