The recent decline in cryptocurrency values and various scandals has resulted in a significant increase in bitcoin trading at Singapore’s DBS Bank, which experienced an 80% rise in volumes on its Digital Exchange (DDEx).
In addition to the surge in trading activity, the amount of bitcoin and ether held in custody by DBS grew by over 100% and 60%, respectively. The bank attributes this growth to a shift among investors towards more trusted and regulated platforms, particularly in light of the collapse of FTX and other related companies.
DBS safeguards all custodized digital assets using institutional-grade cold wallets and maintains rigorous standards by conducting coin purity checks on all digital assets under its custody. The bank also adheres strictly to prevailing anti-money laundering (AML) and know your customer (KYC) regulations.
Lionel Lim, CEO of the DBS Digital Exchange, stated, “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.”
He noted that DBS did not witness any significant sell-offs in 2022, with DDEx maintaining a net buy position for its customers during the second half of the year.
Discussing prospects in the Security Token Offering (STO) sector, Lim remarked, “In 2022, we saw growing interest from our corporate clients and were actively working towards converting a number of enquiries into STOs. However, these were put on hold due to market volatility and macroeconomic uncertainty. We will continue to engage with these potential issuers and explore opportunities for high-quality STO listings in 2023.”