Singapore’s DBS Bank is eyeing Hong Kong’s crypto market with an application for a license, as the bank aims to offer its digital asset services to Hong Kong customers and expand its reach in the fast-growing crypto landscape.
As the bank prepares to establish itself as a center for digital assets, DBS Group intends to extend its cryptocurrency services to Hong Kong.
According to Bloomberg, DBS Bank intends to submit an application for a license that will enable it to provide Hong Kong customers with cryptocurrency trading services.
DBS Bank Hong Kong CEO Sebastian Paredes said in a statement:
“We are planning to apply for a license in Hong Kong so that the bank could sell digital assets to our Hong Kong customers.”
About DBS Bank
DBS Bank is a multinational banking and financial services corporation headquartered in Singapore. The bank was founded in 1968 and has since grown to become one of the largest banks in Asia.
DBS provides a wide range of financial services to individuals, businesses, and institutions. These services include retail banking, wealth management, investment banking, corporate banking, treasury and markets, and institutional banking.
DBS has also been exploring the use of blockchain technology, which underpins cryptocurrencies, in other areas of its business. In 2019, the bank launched a blockchain platform for trade finance that connects buyers, sellers, banks, and logistics providers to streamline the trade finance process.
In December 2020, it launched the DBS Digital Exchange (DDEx), a platform that allows institutional investors and accredited investors to trade digital assets. The Exchange is fully integrated with the bank’s banking services, allowing customers to seamlessly transfer funds between their digital wallets and their bank accounts. It is also the first digital asset exchange in the world to be backed by a traditional bank.
Crypto regulation in Hong Kong
The Hong Kong Monetary Authority (HKMA) said in a press release a few weeks ago that it planned to issue extensive restrictions on digital assets and stablecoins. The HKMA has made it clear that algorithmic stablecoins would not be permitted, and the agency wants to develop a comprehensive legal framework for stablecoins, with one of the guiding principles being that the tokens will be fully backed and tradable.
Several cryptocurrency investors have grown apprehensive of the way to deal with algorithmic stablecoins since the disastrous failure of TerraUSD (UST) in May 2022. Because it was not collateralized, as its founder stated, TerraUST’s design made it more unstable than other stablecoins.
The HKMA is actively following developments in the cryptocurrency sector, just like all other central banks and financial authorities throughout the world, and if necessary, may take measures to safeguard consumers and maintain the stability of the financial system.
Final Thoughts
DBS Bank’s adoption of cryptocurrencies and blockchain technology reflects the growing trend among financial institutions to explore the potential of these emerging technologies to transform traditional banking and financial services.
By leveraging these technologies, DBS is poised to provide more innovative and efficient financial services to its customers, positioning the bank as a leader in the digital banking landscape. As the industry continues to evolve and new technologies emerge, DBS Bank will no doubt remain at the forefront of the digital revolution in financial services.
Rickie Sanchez is an article writer specializing in cryptocurrency news. Since late 2017, he has been actively investing in cryptocurrencies. He is enthusiastic about everything that has to do with crypto and he hopes that the readers of his articles in the years to come will gain a massive understanding of blockchain technology.
