OSL Prepares for Fund Launch Following License Approval

Singapore’s largest bank in terms of assets under management (AUM), DBS Bank, has introduced “DBS Token Services,” an offering it describes as “a new suite of banking services that integrate tokenisation and smart contract-enabled capabilities with its award-winning banking services.” The bank announced details of the new service offering via a press release published on its behalf by PR Newswire on Oct. 18. The product caters towards the needs of DBS Bank’s institutional clients, with the objective of unlocking operational efficiencies and transaction banking capabilities.  The product suite includes DBS Treasury Tokens, conditional payments and programmable rewards, with the latter allowing institutions to program and manage the use of funds. The products run on the bank’s permissioned blockchain, while being Ethereum virtual machine (EVM) compatible.Photo by Shubham Dhage on UnsplashRunning on permissioned blockchainThe bank pointed out the implications of operating the service over a permissioned blockchain network, stating:”Using a permissioned blockchain provides DBS full control over these services, enabling the bank to harness the benefits of blockchain technology while adhering to compliance standards.” Permissioned networks utilize distributed ledger technology (DLT) but they don’t truly embrace decentralization. They’ve proven popular with traditional financial services companies who want to still maintain ultimate control over the network. Conditional paymentsThe bank’s new product suite integrates tokenization and smart contract capabilities with existing conventional services. Those smart contracting capabilities make programmability an accessible feature for institutions relative to fund governance.  With that, conditional payments are likely to lead to an improvement in payment workflows for institutions. The bank believes that this aspect of its latest offering builds upon a recent pilot project that DBS engaged in alongside Enterprise Singapore and the Singapore Fintech Association (SFA). That project involved the utilization of blockchain technology, and in particular smart contracting, for the purpose of distributing government grants. DBS Token Services has been integrated with the bank’s core payment engine and various other banking sector payment infrastructures. Treasury Tokens enable institutional clients to settle multi-currency intra-group transactions across multiple markets instantaneously, 24/7. Back in August DBS partnered with digital payments provider Ant International, an affiliate of Chinese conglomerate Alibaba Group, on a pilot project involving blockchain-based treasury and liquidity management using Treasury Tokens. DBS Bank’s Group Head of Global Transaction Services, Lim Soon Chong, claimed that "by leveraging tokenisation and smart contract capabilities, DBS Token Services enables companies and public sector entities to optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement.” Chong added that the new service is a leap forward in transaction banking, demonstrating “how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences.” Embracing blockchainDBS is an outlier in TradFi relative to blockchain and digital assets insofar as it has delved much deeper into the emerging technology by comparison with the majority of its peers. Last month, the company announced that it plans to introduce over-the-counter (OTC) crypto options trading and structured notes for institutional clients during Q4 2024. Earlier in the year, it participated in a proof of concept for FX payment versus payment (PvP) settlement on the blockchain of Singapore-based unified ledger market infrastructure firm Partior.

Crypto.com Holds Twitter Giveaway for PSG FansGlobal cryptocurrency trading platform Crypto.com on Tuesday opened a social media giveaway for its Twitter followers as a sponsor of the French football club Paris Saint-Germain (PSG) to commemorate the recent arrival of six new players — Lee Kang-in, Manuel Ugarte, Hugo Ekitiké, Milan Škriniar, Marco Asensio, and Cher Ndour.Photo by Alexander Shatov on UnsplashFootball club with NFT collectionCrypto.com signed a long-term sponsorship deal with PSG in September 2021, becoming the club’s official cryptocurrency platform partner. In June of last year, they introduced the Tiger Champs NFT collection on their NFT marketplace in collaboration with the club and Taiwanese artist Jay Chou, celebrating its tenth Ligue 1 title.“We are delighted to host this giveaway, and we ask for your continued interest in our future events for PSG fans in Korea,” said Patrick Yoon, General Manager of Crypto.com Korea.The platform has been accelerating its expansion in Asia, marked by preparations to launch its services in South Korea and a signed deal with LINE Xenesis, a blockchain developer of Tokyo-based messaging app giant LINE Corp.Giveaway conditionsParticipants with a public Twitter account were eligible to enter the giveaway by following Crypto.com’s official Twitter account and retweeting and liking the giveaway tweet by 00:00 UTC on Thursday.Crypto.com plans to select one participant through a draw and award them a jersey with the autograph of player Lee Kang-in. The winner will be announced via direct message on Twitter by Saturday.The event was also held in lieu of PSG’s friendly match with the South Korean football club Jeonbuk Hyundai Motors, held on Thursday afternoon at the Busan Asiad Main Stadium.PSG is known for topping the ranks of Ligue 1, the top division of French football, and hosting world-famous footballers like Kylian Mbappé and Neymar Jr.

Zipmex, the Asian digital asset exchange, faces another setback as the Securities and Exchange Commission Board of Thailand (SEC Board) moves to recommend the revocation of its digital asset business license. This decision, announced last week, marks the latest in a series of challenges for the exchange, which has struggled to navigate the complexities of the crypto market's downturn.Photo by Oleksandr P on PexelsCapital requirements failureThe SEC's recommendation stems from Zipmex's failure to meet the increased net capital requirement and address deficiencies in its personnel and management structure. These shortcomings were deemed unacceptable by the regulatory body, prompting a 15-day ultimatum issued on Feb. 1. Earlier this month, the Commission ordered a halt to Zipmex operations, enforcing a temporary suspension until such time as the company had improved its financial position and applied needed changes to its management structure.Despite this window for compliance, Zipmex fell short of meeting the specified conditions, leading to the current proposal for license revocation and the imposition of stringent regulatory measures on Thailand's digital asset exchanges. Business suspension extensionDuring a meeting on Feb. 21, the SEC further resolved to extend Zipmex's business suspension, initiated on Feb. 1, and allowed clients to request asset returns on the exchange until March 11. Any unclaimed assets after this date will be required to be placed in a "trusted and secured system," with Zipmex obligated to report this to the SEC. Notably, even after the potential revocation of its license, Zipmex will retain its status as a limited company, subject to associated rights, responsibilities and liabilities, including the possibility of legal action. Zipmex's woes trace back to 2022 when it faced significant challenges due to exposure to failed crypto lender Babel Finance. In July of that year, the exchange suspended withdrawals for weeks due to concerns over its ties to crypto lenders Babel and Celsius, both facing financial distress. Although access to Trade Wallets was restored after three days, Z Wallets remained inaccessible into the following year. Failed Coinbase and V Ventures dealsIn the midst of its troubles, Zipmex attracted interest from Coinbase, albeit without success. While Coinbase made a strategic investment in Zipmex, the acquisition attempt did not materialize as initially intended. Furthermore, Zipmex's financial struggles led it to file for debt relief in Singapore in July 2022, further complicating its position in the market. The exchange's regulatory challenges continued as it faced scrutiny from the SEC regarding compliance with the Digital Assets Act. Despite attempts to secure acquisition deals, such as the proposed acquisition by Thai investor V Ventures, Zipmex has been unable to alleviate regulatory concerns or stabilize its operations effectively. Since obtaining its license from the SEC in January 2020, Zipmex has operated in Thailand, Indonesia, Singapore and Australia. However, its inability to address regulatory requirements and financial challenges has cast doubt on its future viability in these markets.  In November of last year, the company itself announced a temporary cessation of trading in Thailand while it worked towards becoming compliant within that jurisdiction. Earlier this month, Thailand’s SEC took legal action against Akarlap Yimwilai, the former CEO of Zipmex Thailand.