DBS launches bank-supported trust solution for cryptocurrencies

By Leandra Monteiro

DBS Private Bank via its wholly owned licensed trust company, DBS Trustee has launched a trust solution. This will enable its private banking clients to invest and manage their digital assets in a safer and secure manner.

As per DBS claims, this offering is Asia’s first bank-backed trust solution for cryptocurrencies and builds on the DBS Digital Exchange (DDEX). Launched in December 2020, DDEX enables institutional investors and accredited investors to use the fully integrated tokenisation, trading and custody ecosystem for digital assets. The service applies only to cryptocurrencies hosted on the digital exchange: Bitcoin, Ether, Bitcoin Cash and XRP.

“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,” said Joseph Poon, group head of DBS Private Bank, according to media reports.

According to media reports, Lee Woon Shiu, Regional Head of Family Office, Wealth Planning and Insurance Solutions at DBS Private Bank said, “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.

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.”