DBS Bank Ltd is looking to offer support for Bitcoin as it looks to capitalize on the growing demand for cryptocurrency investments among consumers.
Singapore’s biggest banking corporation unveiled a flagship cryptocurrency trading service, dubbed as DBS Digital Exchange, in a “soft-launch.” It later removed the webpage from public view, leaving the Bitcoin community guessing about the correct timeframe of the launch. (Cached page accessible here)
Based on the information available on the original page, the platform primarily intends to assist SMEs and larger corporations in raising capital via the creation and sale of digitized securities and assets.
Meanwhile, it brings forth “trading services” that allow users to exchange fiat currencies for top cryptocurrencies: Bitcoin, Bitcoin Cash, Ether, and XRP.
“Unlike most digital exchanges today, DBS Digital Exchange does not hold any digital assets,” the platform’s official portal reads. “Instead, all digital assets are kept at DBS Bank, which is globally recognized for its custodial services.”
— Fiat Minimalist (@fiatminimalist) October 27, 2020
Bitcoin Adoption Booms
The informal revelation appears almost a month after Taimur Baig–the DBS Bank’s chief economist–openly recognized Bitcoin as people’s hedge against worrisome dollar outflow.
“This thing has fixed circulation, it will not be debased,” said Mr. Baig in September. “People worry about dollar outflow and wondering if they should hold crypto in addition to gold as a safe-haven currency.”
Bitcoin rose by more than 80 percent in 2020 – and by more than 250 percent after the Federal Reserve introduced unlimited bond-buying and near-zero interest policies in March 2020. The cryptocurrency received a further upside boost from the US government after it announced a $2 trillion aid to help Americans through the coronavirus-induced lockdown.
Bitcoin is trading 80 percent higher YTD on global expansionary policies. Source: BTCUSD on TradingView.com
As the expansionary decisions came into effect, the US dollar lost its value against leading foreign currencies. The greenback’s unattractiveness pushed investors further into the safety of riskier and other safe-haven assets, including Bitcoin.
Billionaire investor Paul Tudor Jones, asset management firm StoneRidge, and corporations like MicroStrategy and Square, invested large sums into the Bitcoin sector to effectively replace their cash reserves. PayPal, a global payments giant, also announced its foray into the cryptocurrency sector.
Last three months in Bitcoin:
-MicroStrategy buys $425m in Bitcoin
-Square buys $50m in Bitcoin
-Stone Ridge buys $110m in Bitcoin
-PayPal integrates crypto purchases
-JPMorgan writes about Bitcoin vs Gold competition
-DBS soft launches crypto exchange
— Joseph Young (@iamjosephyoung) October 27, 2020
Each event led the Bitcoin prices higher across its spot and derivatives markets. With DBS further hinting to take the cryptocurrency mainstream, and a second stimulus deal underway, Bitcoin’s likelihood of adding more valuation to its market has surged highly.