DBS Private Bank has, on May 14, launched a trust solution for cryptocurrencies, making it Asia’s first bank-backed trust solution for the asset class.
The solution was launched via DBS Trustee, DBS’s wholly-owned, licensed trust company, to enable the bank’s private clients to invest, custodise and manage their digital assets in a safe, secure and structured manner.
The new trust offering applies only to cryptocurrencies hosted on the DBS Digital Exchange (DDEX), which includes Bitcoin, Ether, Bitcoin Cash and XRP.
Through the offering, clients can now integrate cryptocurrencies into their wealth succession plans.
The offering builds on DDEX’s existing proposition for DBS’s private banking clients, which provides security and transparency for crypto-assets with institutional-grade safekeeping.
DDEX was launched in December 2020, which enables institutional investors and accredited investors to tap into a fully integrated tokenisation, trading and custody eco-system for digital assets.
The exchange has enjoyed steady growth since its launch, and currently holds $80 million in assets under custody, with trading volumes up 10-fold to $30 million to $40 million.
On the new offering, Joseph Poon, group head of DBS Private Bank says, “In recent years, more clients have expressed interest or are already invested in digital assets, and we expect this trend to accelerate as cryptocurrencies turn more mainstream.” “Our trust structure allows clients to conveniently hold these assets, with a peace of mind that they will be safely managed and passed on to their intended beneficiaries,” he adds.
The trust solution offers DBS Private Bank’s clients the peace of mind that critical information about their digital assets will be kept confidential after their passing.
“Confidentiality, peace of mind and taxation often emerge as top-of-mind concerns in our conversations with clients, and we would advise them to set up trust structures rather than wills, which are subject to the probate process. This is especially so considering that international regulations and protocols are still nascent in the digital asset space, which could give rise to complications or unnecessary confusion if proper measures are not in place to prevent them,” says Lee Woon Shiu, regional head of family office, wealth planning and insurance solutions at DBS Private Bank.
“By keeping their DDEX-hosted digital assets in a trust administered by professional licensed trustees such as DBS Trustee, our clients can be assured that the succession planning of their digital asset wealth is being taken care of by experienced professionals,” Lee adds.
As at 10.56am, shares in DBS are trading 34 cents or 1.2% up at $29.84.
