DBS Bank’s crypto trading platform sees rising interest from institutional investors following the collapse of crypto exchanges in the previous year.
Singapore government-owned megabank DBS is among the few companies worldwide that reaped major benefits from massive crypto industry collapses in 2022.
DBS Digital Exchange, DBS Bank’s institutional crypto trading platform, saw a significant increase in Bitcoin trading volumes last year. According to DBS Digital Exchange CEO Lionel Lim, the number of DBS crypto clients more than doubled in 2022 compared to the previous year.
“Bitcoin trading volumes grew 80% at the digital exchange during the same period,” Lim said in an interview with Cointelegraph on May 8.
The executive believes that the spike in demand for crypto services at DBS Digital Exchange is a consequence of crypto exchange collapses in 2022. Lim noted that DBS continues to see a growing trend in volumes. He stated:
“DBS continues to benefit from the flight to safety and quality following the implosion of several exchanges last year.”
Evy Theunis, head of digital assets at DBS Bank, also said that DBS had seen more cooperation inquiries from digital asset and blockchain firms in recent months.
DBS Bank’s cryptocurrency exchange, launched in 2020, is currently catering exclusively to institutional investors. Although there were previous considerations to expand services to retail customers, as of May 2023, DBS remains a members-only exchange, focusing on serving corporate and institutional investors. This approach was highlighted by Lim, a representative of the bank.
While indicating a positive impact from crypto exchange crashes in 2022, Lim sees no influence coming from the ongoing banking crisis in the United States.
Before the collapse of FTX in November 2022, a substantial portion of crypto trading on the platform originated from institutional investors. In March 2022, FTX introduced a dedicated unit specifically focused on working with institutions. During that period, it was reported that around two-thirds of trading volumes on both FTX and FTX US were attributed to institutional accounts.
“Some of our market makers sought new USD banking rails following the collapse of the crypto-friendly U.S. banks,” Lim said. However, there has been no direct impact on DBS’ crypto exchange, he noted, stating:
“The collapse of the U.S. banks has not impacted our product and service pipeline. That said, we keep a close watch on these developments and are prepared to adjust our plans if necessary.”
Despite its crypto-friendly stance, DBS Bank remains unfazed by any potential risks associated with its exposure to cryptocurrencies.