After launching a clean sound exchange last December, DBS Bank announced a crypto management and custody service for its qualified customers. This would be a first in this region of the world according to the bank, which insists on the heritage dimension of the project.
Trusted support for cryptocurrencies
The DBS Group has just announced that its private banking subsidiary, DBS Private Bank, has started offering a trust solution for cryptocurrencies via DBS Trustee. In other words, its privileged clients can use this structure to ensure the management and custody of their digital assets. Only those offered by the bank’s exchange, the DBS Digital Exchange, are available: Bitcoin, Ether, Bitcoin Cash and XRP.
According to the bank, this offer corresponds to a growing demand from customers.. The success ofexchange, launched in December and supported by the Bank of Singapore, does not seem foreign to it either. During his press conference on his performance in the first quarter of 2021, DBS Bank CEO Piyush Gupta gave the details.
The figures for the first quarter are encouraging… There are $ 80 million in assets in custody, transaction volumes have increased tenfold to reach $ 30 million to $ 40 million.”
Cryptocurrency as a legacy
Aimed at a wealthy clientele, concerned about the transmission of its capital, DBS Bank’s offer falls within the fiscal framework in force in the city-state of Singapore. Indeed, thanks to this type of structure, clients can integrate cryptocurrencies into their legacy projects, avoiding inheritance tax and being able to defer capital gains tax.
“Our trust structure allows clients to hold these assets in a convenient way, with the peace of mind that they will be managed securely and passed on to their designated beneficiaries.”
Joseph Poon, Head of DBS Private Bank Group
DBS is not new to digital assets. She has already signed a collaboration with JPMorgan and Temasek for a multi-currency interbank payments network which operates the blockchain and JPM Coin technology.