Singapore's Largest Bank DBS Launches Cryptocurrency Trust in Asia First

Singapore-based DBS Private Bank becomes the first in Asia to launch cryptocurrency trust services providing custody and trading for traditional investors.

May 14, 2021, | AtoZ Markets – DBS Bank's regional arm, DBS Private Bank, launched Asia's first cryptocurrency trust. Bloomberg reports this with reference to the bank's representatives.

The trust will allow private clients to invest, store and manage cryptocurrencies in a "secure" way, said Joseph Poon, head of DBS Private Bank . The trust operates on the basis of the DBS Digital Exchange cryptocurrency exchange and maintains the digital assets available on it:

  • bitcoin (BTC)
  • ether (ETH)
  • bitcoin cash (BCH)
  • Ripple (XRP).

The decision by DBS to expand the list of cryptocurrency services became known after the media reported on UBS's plans to enter the cryptocurrency market. It is reported that the financial holding is exploring the possibility of providing investment services in this segment for wealthy clients. However, the details and timing of the launch of crypto services from UBS remain unknown.

Recall that at the beginning of 2021, the chief economist of the Bank of Singapore, Mansur Mohi-uddin, admitted that cryptocurrencies could partially displace assets such as gold. However, this requires removing key obstacles such as high volatility and lack of regulatory clarity.

The DBS trust is potentially becoming a serious competitor for the US market, where Grayscale Investments has dominated for a long time. However, with the emergence of Canadian competitors, fund trust margins began to plummet. This sparked outrage among big investors, who threatened to take action if Grayscale didn't change the situation.


However, it does not seem that the fund could somehow influence the situation. At the time of writing, Grayscale's Bitcoin Trust markups are at historic lows of -21.23%.

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