Bitcoin (BTC) trading has been booming at Singapore’s DBS Bank, which saw volumes climb by 80% on its Digital Exchange (DDEx) as a result of the recent decline in the value of cryptocurrencies and the various scandals that have been plaguing the industry.
In tandem with the expansion of trade, DBS saw an increase in the quantity of Bitcoin and Ethereum (ETH) under its custody of more than 100% and 60%, respectively, according to a report by Finextra published on February 15.
Additionally, DDEx had more than doubled the number of customers it served in 2022, reaching close to 1,200 participants who were registered on the exchange as of December 31, 2022.
Following the failure of FTX and linked entities, DBS thinks the indicators represent a tendency among investors toward reputable and regulated platforms to access the market.
Using cold wallets of institutional quality, DBS stores all digital assets that are under custody in a separate location inside the bank itself. In addition to this, the bank ensures compliance with all applicable AML and KYC regulations by performing coin purity checks on any digital assets that are brought into its custody.
According to Lionel Lim, the Chief Executive Officer of the DBS Digital Exchange:
“We believe that the market has decisively shifted its focus towards trust and stability especially in the wake of multiple scandals that have rocked the industry. As a regulated digital exchange backed by the DBS Group, we offer many unique advantages that investors have come to appreciate as they seek reliable gateways to access the digital asset economy.”
Crypto trading so far a success for DBS
Since the rollout of self-directed cryptocurrency trading through DBS digibank in September, more than 90% of transactions conducted by the bank’s wealthy customers are now carried out digitally. Meanwhile, DDEx will maintain its status as a members-only exchange that caters to family offices, accredited investors, corporate and institutional investors, and other types of investors.
“In 2022, we saw growing interest from our corporate clients and were actively working towards converting a number of enquiries into STOs,” Lim said.
Finally, the increased interest in Security Token Offering (STO) from DDEx’s corporate customers prompted the exchange to announce that it would investigate origination opportunities for high-quality STO listings in 2023.
