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DBS Bank reports an 80% increase in Bitcoin trading following cryptocurrency downturns in 2022, according to an executive.
DBS, the megabank owned by the Singapore government, is among the select few companies globally that gained substantial advantages from the significant downturns in the crypto sector during 2022.
The DBS Digital Exchange, which is the institutional crypto trading platform of DBS Bank, experienced a notable rise in Bitcoin (BTC) trading volumes last year. As stated by DBS Digital Exchange CEO Lionel Lim, the number of crypto clients at DBS more than doubled in 2022 compared to the prior year.
“Bitcoin trading volumes increased by 80% at the digital exchange during that timeframe,” Lim mentioned in an interview with Cointelegraph on May 8.
The executive attributes the surge in demand for crypto services at DBS Digital Exchange to the collapses of various crypto exchanges in 2022. Lim observed that DBS continues to experience an upward trend in trading volumes. He remarked:
“DBS continues to gain from the shift towards safety and quality following the downfall of several exchanges last year.”
Evy Theunis, who leads digital assets at DBS Bank, also informed Cointelegraph that DBS has received an increase in collaboration inquiries from firms in the digital asset and blockchain sectors in recent months.
Established in 2020, DBS’ cryptocurrency exchange caters exclusively to institutional investors. Although there were considerations to extend services to retail clients last year, DBS remains a members-only exchange serving corporate and institutional investors as of May 2023, Lim indicated.
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Prior to the collapse of FTX in November 2022, a considerable portion of crypto trading on the platform was conducted by institutional investors. In March 2022, FTX initiated a dedicated unit focused on institutional partnerships. At that time, it was reported that approximately two-thirds of trading volumes on FTX and FTX US originated from institutional accounts.
While noting a favorable effect from the crypto exchange failures in 2022, Lim does not perceive any impact from the current banking crisis in the United States.
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“Some of our market makers sought new USD banking options following the collapse of the crypto-friendly U.S. banks,” Lim stated. However, he pointed out that there has been no direct effect on DBS’ crypto exchange, adding:
“The collapse of the U.S. banks has not affected our product and service pipeline. That said, we remain vigilant regarding these developments and are ready to modify our plans if needed.”
Despite being a crypto-friendly institution, DBS does not express concern regarding any risks purportedly arising from its crypto exposure.
“DBS does not rehypothecate or trade digital assets held in clients’ custody. Therefore, there is no liquidity risk,” Lim explained to Cointelegraph. “Our clients’ digital assets are held in custody with DBS Bank, separate from DBS Digital Exchange,” the CEO emphasized.
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