Singaporean megabank DBS is one of the few companies in the world to benefit from a massive cryptocurrency industry collapse in 2022.
DBS Bank's Institutional Crypto Trading Platform DBS Digital Exchange Sees Significant last year's transaction volume. According to Lionel Lim, CEO of DBS Digital Exchange, in 2022 DBS will store more than double the amount of Bitcoin for its customers compared to the pre previous year.
“Bitcoin trading volume on digital exchanges has grown by 80% over the same period,” Lim told Cointelegraph in a May 8 interview. The executive believes that DBS Digital Exchange’s surge in demand for crypto services is a result of the collapse of crypto exchanges in 2022. Lim noted that transaction volumes at DBS continue to trend upward. He said: "DBS continues to benefit from a leap in safety and quality following the collapse of several exchanges last year."
Evy Theunis, head of digital assets at DBS Bank, also told Cointelegraph that DBS has received more collaboration inquiries from digital asset and blockchain companies in recent months. Launched in 2020, DBS's cryptocurrency exchange initially catered exclusively to institutional investors. In September 2022, DBS Digital Exchange will expand the use of its products to qualified individual investors. The digital asset platform currently serves corporate and institutional investors, accredited investors and family offices.
Before FTX crashes in November 2022, a significant amount of cryptocurrency trading on the platform came from institutional investors. In March 2022, FTX established a dedicated department for working with institutions. According to reports, around two-thirds of FTX and FTX US's trading volume at the time came from institutional accounts.
While Lim said the collapse of cryptocurrency exchanges in 2022 would have a positive impact, he does not see any impact from the ongoing banking crisis in the United States. “After the collapse of crypto-friendly US banks, some of our market m akers sought new US dollar banking," Lim said. However, he noted that DBS's cryptocurrency transactions were not directly affected, stating:
"The Bank of America collapse has not impacted our product and service pipeline. That said, we are monitoring these developments closely and are prepared to adjust our plans if necessary." DBS itself is a cryptocurrency-friendly bank, but does not see a liquidity risk with its exposure to cryptocurrencies.
“DBS will not re-hypothecate or trade digital assets in customer custody. Therefore, there is no liquidity risk,” Lim told Cointelegraph. "Our customers' digital assets are in the custody of DBS Bank, which is separate from DBS Digital Exchange," the CEO noted.
