DBS Bank will Continue to focus on Institutional Investors this year
DBS bank is the biggest bank in Singapore and this is the bank is known for its innovation and acceptance of technology. Bank has started its crypto services later but it's only for instructional investors as of now. The bank has been expanding its global presence while increasing its banking portfolio and now with added crypto services. It's not much in the news because currently it's limited to Institutional Investors and for this year, they are not going to add the same for retail investors.
There are very few banks in the world who are in favor of crypto as of now and DBS is one of them which is good. Even in Singapore, there are certain regulatory issues for which bank is working on bringing a solution before they launch the crypto services to retail investors. Earlier it was planned to get rolled out in late April 2022 but now there is a delay and this is postponed until the end of the year 2022 however the crypto transaction services will continue as usual for Institutional Investors.
The DBS bank CEO said during the last quarter trading activity "slowed a bit" but volume continues to grow. DBS' exchange now has almost SGD 1 billion ($724 million) worth of crypto in custody.
This is a very good amount of crypto holding by the bank and it shows that DBS has bigger plans in crypto however it might take some time to get unfolded. Holding 1 billion SGD worth of crypto is good to serve the HNI investors and this will also grow over time. They are going to have their own exchange as they never shared that they will depend on any third-party exchange to facilitate the crypto offerings the as a bank, this is something that can also start new for the crypto segment. It's the time when in India, banks are not ok to provide their banking services for crypto transactions but DBS is taking a lead to offer complete crypto trade services, which shows that they have realized the potential of the crypto.
Banks are built for people and they are the ones who can make monetary transactions easy and accessible for more people however seems like some banks are lost as they are doing something else by stopping the access to people. Crypto is here to stay and it's not going anywhere. It's the era when people want to own their money and they are ok if banks keep the control of their funds so it's high time when the banking sector needs to understand the need and realize the change.
Crypto can also help banks to build something great for them provided they follow a different approach where they support crypto and bring more innovative products. It's happening but the percentage is too less. Some banks have announced earlier that they will provide safe custody for crypto and even they will provide accounts where people will be able to hold their digital assets.
It seems that DBS bank is setting up an example for other banks to learn and follow because crypto is the future so the sooner they accept the truth will be good for them. They can surely avoid it but this delay might make things difficult for them. Now when DeFi getting more popularity and it's majorly because of one reason investors don't want to lose control of their funds. Risk appetite is also fine for them as long as they have control on funds and they can change the instruments anytime they want.
DeFi has brought a major shift in the investment segment and this is just beginning once more people become part of it will make things even better. Earlier DeFi was just for the investment but now other products like Lending etc are also getting added. Lending was basically offered by banks but now there are many platforms offering lending in crypto for much lesser interest and with DeFi it's going to be even easier and more interesting.
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