DBS Bank Crypto Platform Records 80% Trading Volume In 2022 – Official
As the crypto market bled last year, the state-backed DBS Bank in Singapore emerged as one of the few global companies profiting greatly from the chaos. 2022 marked a notable surge in Bitcoin trading volumes on DBS Digital Exchange, DBS Bank’s institutional platform dedicated to crypto trading.
Spike In Institutional Investors
Lionel Lim, CEO of DBS Digital Exchange, stated in a recent interview that the number of clients engaged in crypto trading at DBS more than doubled in 2022 compared to the preceding year. During this same period, Bitcoin trading volumes on the digital exchange saw an impressive 80% growth, Lim further revealed.
The DBS executive has attributed the surge in demand for crypto services on their platform to the collapses witnessed by other exchanges in the industry during the 2022 market rout. According to Lim, this trend has increased volumes on DBS Digital Exchange, which continues to grow.
In recent months, DBS Bank has experienced an upsurge in inquiries from digital asset and blockchain firms seeking collaboration, as confirmed by Evy Theunis, the Head of Digital Assets at DBS Bank. DBS Bank’s cryptocurrency exchange was launched in 2020, catering exclusively to institutional investors.
However, the bank had been contemplating expanding its services to include retail customers last year. Lim noted that as of May 2023, the exchange remains exclusive to members serving corporate and institutional investors.
Benefitting From The 2022 Market Crash
Before its collapse in November 2022, FTX saw considerable crypto trading on its platform from institutional investors. According to reports, roughly two-thirds of trading volumes on both FTX and FTX US were from institutional accounts.
In March 2022, FTX launched a specialized unit to work with institutional customers and stated that he sees no impact from the ongoing banking crisis in the United States despite the positive effects felt by the exchange following the crashes of certain crypto firms in 2022. Lim believes the banking crisis in the US has had no bearing on the increase in demand for crypto services witnessed on their platform.
Lim disclosed that some of the market makers at DBS had to look for new USD banking rails after the collapse of certain US banks that were favorable to the crypto industry. Nonetheless, the executive clarified that this did not directly impact DBS’s crypto trading.
Despite being a friendly bank towards the crypto industry, DBS is not concerned about any risks arising from its exposure to the sector, per its CEO’s recent statements. Furthermore, the CEO clarified that the bank does not trade digital assets in the custody of its clients.
As a result, there is no liquidity risk involved in DBS activities. According to Lim, the clients’ digital assets are kept separate from DBS Digital Exchange and are held in custody with DBS Bank.
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