The Monetary Authority of Singapore (MAS) has accorded “in-principle” approval for digital payment token services.

DBS Vickers (DBSV), the brokerage arm of DBS Bank (SGX: D05), has become one of the first few financial institutions to receive in-principle approval from MAS under the Payment Services Act to provide trading services for digital payment tokens. (DBS)

DBSV is now following through with necessary actions to qualify for the award of a license in this regard from MAS.

Once it is fully licensed it would be able to offer its services to asset managers and companies for trading in digital payment tokens in the capacity of a member of DBS Digital Exchange (DDEx).

DBS launches DDEx

Launched in December 2020, DDEx is part of DBS’ integrated digital asset ecosystem that leverages blockchain technology to provide clients with a secure and transparent platform to raise funds from the private market.

In May, DBS issued a S$15 million (US$11.3 million) digital bond in its first Security Token Offering (STO) via DDex which was completed by way of a private placement in May.

The bank’s group head of capital markets Eng-Kwok Seat Moey said at the time that asset tokenization would become more mainstream as more and more clients embraced security token issuance as part of their capital fundraising exercise.

As of end-June 2021, over 400 investors have been enrolled to trade on DDEx, which clocked close to SGD 180 million in total trading value in Q2 2021, more than five times the value traded in the previous quarter.

DBS is now further building up its pipeline of potential STOs, it said in the announcement.

Also, with effect from August 16, DDEx will operate round the clock as against only during Asian trading hours previously.

Eng-Kwok Seat Moey said: “We have seen keen interest among asset managers and corporates for access to digital payment token services, and with DBSV receiving in-principle approval under the PS Act, we are well-placed to meet this growing demand.”

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