DBS Bank, the largest bank in Southeast Asia, has announced plans to launch a cryptocurrency exchange in January 2019. The DBSVault cryptocurrency exchange, to be launched in Singapore, will be the first of its kind in Southeast Asia, supporting crypto assets such as Bitcoin and Ethereum. The exchange will also offer investors access to ICO tokens issued on DBSVault, which will be the first ever security token offering (STO) on a cryptocurrency exchange.
Cryptocurrencies, especially bitcoin, have found their way into the mainstream. In Southeast Asia, however, a bitcoin exchange-traded fund from a large bank is setting a new precedent — both for the region’s financial sector and for crypto as a whole.
The DBS Group, Southeast Asia’s largest bank by total assets, has launched the world’s first security token offering on its cryptocurrency exchange. The bank’s subsidiary, DBS Vickers Securities, is offering Singaporean and Malaysian corporate customers the chance to purchase Securitize, a security token platform. The platform will enable customers to create, and trade, security tokens, assets built on blockchain technology via a decentralized network.. Read more about dbs digital exchange and let us know what you think.DBS, Southeast Asia’s largest bank, has launched its first security token offering (STO) on its cryptocurrency exchange. The DBS Digital Bond is priced at 15 million Singapore dollars. “We expect asset tokenization to increasingly become more mainstream,” said a DBS executive.
DBS’ First Security Token Offering
DBS announced Monday its first security token offering (STO) on the DBS Digital Exchange (Ddex). The DBS Digital Bond, priced at 15 million Singapore dollars (US$11.37 million), comes with a six-month tenor and coupon rate of 0.60% per annum. It is offered as a private placement and DBS is the sole bookrunner for the transaction. The bank detailed: This paves the way for other issuers and clients to tap on Ddex’s capabilities to efficiently access capital markets for their funding needs and sets the stage for more STO issuances and listings on Ddex as asset tokenisation turns mainstream. Clifford Lee, Global Head of Fixed Income at DBS, said that “this marks the first of many steps in the journey to evolve the traditional bond issuance into a broader digital ecosystem where more inclusive issuer and investor participation can be rapidly developed.” Lee continued: “While most bond tokenization exercises announced in Asia to date tend to be repackaged forms of a conventional bond issue, the current transaction directly combines existing legal and tax infrastructure requirements with a direct issuance on the digital exchange in smaller lot sizes.” The executive added: This bond token structure was only made possible because of the progressive development of Singapore’s legal and tax infrastructure, which can facilitate more STO issuances to broaden and deepen our capital markets. Eng-Kwok Seat Moey, Group Head of Capital Markets at DBS, commented: “Our maiden STO listing on the DBS Digital Exchange is a significant milestone … This cements our ability to provide integrated solutions across the digital asset value chain, from deal origination to tokenization, listing, trading, and custody, which in turn opens the door for more STOs on Ddex.” He emphasized: We expect asset tokenisation to increasingly become more mainstream as more of our clients start to embrace security token issuance as part of their capital fund raising exercise which we believe will boost Singapore’s ambitions to be a digital asset hub in Asia. The DBS Digital Exchange was launched in December last year. It offers “exchange services between four fiat currencies (SGD, USD, HKD, JPY)” and four “cryptocurrencies, namely bitcoin, ether, bitcoin cash, and XRP,” its website explains. The bank disclosed in its first-quarter earnings call that its crypto exchange “enjoyed strong market traction since its launch.” Specifically, its “Daily trading volumes have increased 10-fold from the initial week of launch, and the exchange currently serves over 120 participants. DBS also holds over SGD 80 million in digital assets in its custodial service,” the bank revealed. In May, the bank launched a trust service for cryptocurrencies. What do you think about DBS issuing security token offerings? Let us know in the comments section below. Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.DBS Bank (formerly known as DBS, now known as DBS Group) has given the crypto world a bit of a lift today with the launch of its Initial Coin Offering (ICO) for a smart contract security token called “DBS VUSE” on its cryptocurrency exchange, DBS VUSE (DBSV-ETH). The token will have a soft cap of $15 million and a hard cap of $30 million through the sale of 38 million VUSE tokens. The maximum supply of the token will be 1 billion, and the VUSE token can be purchased with Ethereum, Bitcoin or fiat currency.. Read more about future of cryptocurrency 2021 and let us know what you think.
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