Singapore's largest bank, DBS Group, is set to offer custody services for stablecoin reserves and related cash management services for the first time.
Singapore's Largest Bank DBS Group Partners with Paxos for Stablecoin Services
This significant development came about thanks to a partnership with the local unit of cryptocurrency issuer Paxos.
The announcement comes after Paxos recently received a license from the Monetary Authority of Singapore, marking DBS' deeper involvement in the digital asset ecosystem.
“We look forward to partnering with leading stablecoin issuers for their cash management and reserve retention needs, provided they meet regulatory requirements,” Evy Theunis, head of digital assets in DBS's corporate banking group, said in an email.
Singapore is actively promoting the use of blockchain technology to strengthen its status as a global financial centre.
Proponents argue that stablecoins, pegged 1-1 to major currencies and backed by reserves such as cash and bonds, could revolutionize traditional finance by making payments easier, faster and cheaper.
According to DefiLlama data, there are currently approximately $162 billion worth of stablecoins in circulation, with Tether Holdings Ltd's USDT token holding a 70% market share.
Circle's USDC is the second largest with a 20% share, while Paxos issues USDP and PayPal's PYUSD.
*This is not investment advice.