DBS‘s newly-introduced self-directed crypto trading function to allow accredited investors to trade cryptocurrencies on the DBS Digital Exchange (DDEx).
The ability to trade cryptocurrency on the DDEx has historically been reserved for institutional investors, family offices and clients of DBS private bank.
But now, with the roll-out of its self-directed cryptocurrency trading function, Singapore-based DBS will extend this ability to accredited investors in the DBS Treasures segment.
For a start, some 100,000 of these clients in Singapore will be able to access the services offered by DBS’ digital asset ecosystem.
“Broadening access to DDEx is yet another step in our efforts to provide sophisticated investors looking to dip their toes in cryptocurrencies with a seamless and secure way to do so,” explains the Bank’s group executive, consumer banking and wealth management, Sim S. Lim.
The launch of the crypto trading feature comes at a time when DBS admits that its wealth clients are increasingly choosing self-directed options, with nine out of 10 equity transactions executed digitally today.
Starting from a minimum investment sum of $500, accredited wealth clients will be able to trade Bitcoin, Bitcoin Cash, Ethereum and XRP on the DDEx. Cryptocurrency holdings will be reflected alongside the rest of their portfolio in DBS digibank app.
While the launch of this new function has been highly anticipated, the bank confirmed in a recent statement that it is in the process of developing adjoining aspects of the service, with a digital onboarding process slated for release in 2023.
Interest in cryptocurrencies remains resilient, with the asset class finding its way into more investors’ portfolios. Seventy-one per cent of high net-worth individuals globally – and 91 per cent of those below 40 years of age – have invested in digital assets; according to Capgemini’s World Wealth Report 2022.
In the midst of a volatile environment, well-regulated digital exchanges such as DDEx have seen resilient business metrics – between the months of April and June 2022 when volatility in cryptocurrency markets started increasing, the total number of trades on DDEx doubled, and the quantity of bitcoin bought rose nearly four times.