DBS Launches Crypto Trust Offering

DBS enlarges its cryptocurrency offering with a trust solution from its private banking arm amid growing demand for the asset class even within wealth succession plans. DBS Private Bank launches its cryptocurrency trust solution via wholly-owned DBS Trustee, according to a statement.

The new trust offering is limited to cryptocurrencies currently supported by the bank’s digital asset exchange – DBS Digital Exchange (DDEX) – which includes Bitcoin, Ether, Bitcoin Cash, and XRP.

According to the bank, the solution will ensure that critical information like access instructions or wallet backups will be kept confidential when passing on wealth in succession plans due to the additional protection afforded to trusts and their exclusion from the probate process.

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, said DBS Private Bank’s regional head of family office, wealth planning and insurance solutions Lee Woon Shiu.

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.

DBS expands its crypto offering amid growing demand for the digital asset class with DDEX registering S$80 million ($59.9 million) in assets under custody and a 10-fold increase of trading volumes since launch to S$30-40 million.

The exchange currently has 120 clients with more awaiting onboarding.

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, said group head of DBS Private Bank Joseph Poon. «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.»