The DBS news that changes everything
Founder and CEO
14 December, 2020 | 5 MIN
The DBS news that changes everything
An exciting piece of news was released the other day that we all need to understand (and then share!) This means you need to read this blog post. I guarantee it’ll be the best thing you see all week.
Last week, DBS Bank of Singapore officially announced the arrival of its crypto division. This is the biggest news to hit crypto in 2020 as DBS will become the world’s first cryptocurrency exchange backed by a traditional bank and will mark the start of the momentum stage of this asset class.
I am not going to mince words here. This is a landmark step for the future of crypto and if I were you, I would be encouraging everyone I had ever known to buy crypto now because what’s happening right now will change the entire world as we know it. Your friend who is sitting on his hands while this happens is seriously missing out on the most important shift in history.
The detail of the DBS announcement
I think to get the detail straight from the horse's mouth it is better if I cut and paste the first couple of paragraphs from Singapore’s leading business newspaper, The Straits Times, 11th Dec 2020.
“South-east Asia's largest bank DBS will launch a digital currency exchange that will allow investors to trade in cryptocurrencies and firms to raise funds through asset tokenization. The crypto exchange is expected to start trading as early as next week, while the securities platform will be set up in the next few months.
The blockchain-based DBS Digital Exchange will allow institutional and accredited investors to access an integrated tokenisation, trading and custody ecosystem for digital assets”.
Let’s put this into context
DBS was founded by the Singapore government and is the largest bank in South-East Asia. It is offering four ‘Blue Chip’ crypto-currencies to its institutional and high-net-worth clients across the region. The digital exchange is being launched and is part-owned by the Singapore Stock Exchange.
Imagine if Barclays bank announced today the launch of its new Crypto division in association with the London Stock Exchange? Imagine if the ANZ bank announced its new Crypto division in association with the ASX?
The True Impact
Credibility - From today, any question mark over the credibility and future of cryptocurrencies has died. Imagine an analyst firm or media outlet calling crypto a scam or bubble? They would look ridiculous because not only is crypto here to stay but it also enjoys the support of financial giants like DBS and the SSX.
Competition - Across Asia, from Japan to Indonesia, the largest bank has now started offering crypto-currencies services to all institutional and high net worth people. Imagine being at another bank, and DBS is offering trading in the hottest asset class in the world to your clients? Within months, I am sure every bank in Asia will be offering crypto to their clients. If it’s being offered in Asia, all banks across the world will start offering crypto to clients. This is the first domino to fall!
Prices - Imagine the impact on the prices of those ‘blue-chip’ coins when the weight of Asia’s largest financial institutions wade in?
Timing - If you thought you had ‘missed out’ on the crypto boom, the arrival of the ‘big boys’ means the party has only just started. It’s time to go ‘all in!’
Others will follow - BBVS, Spain’s second-largest bank just announced the launch of its Crypto division as well so you can guarantee European banks will be joining the crypto party in no time.
Trading Tokens - The article on DBS also said,
“It will provide a regulated platform for the issuance and trading of digital tokens backed by financial assets such as shares in unlisted companies, bonds, and private equity funds. Its digital custody services will hold cryptographic keys that control digital assets on behalf of clients.”
‘Tokenisation’ will be the next wave of crypto after the ‘Currency Wave' of 2021-22. By creating a ‘token’ of an underlying asset, such as a share or gold, makes that asset much easier to trade. This will be a market valued in tens of trillions of dollars.
What about Dacxi?
This is fantastic news for Dacxi. It helps our customers and that means everything to us.
I have been predicting this development since 2017. Dacxi does not compete with companies like DBS for this client base or its tokenization expansion. Also, for your interest, Dacxi was asked to pitch to provide DBS’s exchange in 2018 so we have known about this forthcoming development for more than two years. As you can imagine, it has always given us confidence that we would eventually be proven to be in the 'Right Place at the Right Time’.
DBS’s ‘tokenization’ strategy is exactly what Dacxi will be doing, only they will focus more on major regulated trading assets rather than funding innovation. Their actions though, provide validation that this concept is credible.
The last word
My question to you is what are you going to do about this news? This is the news to use to talk to anyone about crypto over Xmas. We hope you will gift crypto to people using our new gifting feature. We hope you will help people just open an account using our 500 Dacxi Coin free offer.
Whatever happens, please digest the news and celebrate your smart action at joining the Dacxi crypto world! We look forward to an exciting 2021 working with you whilst growing together into the most amazing combined value-driven crypto wealth system available both now and in the future.