DBS Bank-Owned Exchange Reports Increased Crypto Trade Despite Market Turbulence
Despite the recent volatility in the cryptocurrency markets, the members-only DBS Digital Exchange (DDEx), a brokerage arm of Singapore’s DBS bank that caters to institutional and professional investors, saw a significant increase in the volume of deals throughout June.
When compared to April, the total number of trades on the DBS Digital Exchange more than doubled in June, with purchase orders making over 90% of all deals. According to a bank statement, the number of Bitcoin (BTC) purchases quadrupled while the quantity of Ethereum (ETH) purchased climbed by 65% in June 2022 compared to April 2022, Finews.Asia reported on August 23.
The demand for DBS’s custody services, which are in charge of the autonomous storage of digital assets inside the bank, has also increased. The amount of bitcoin and ether held in custody climbed by almost 30% and 3%, respectively, between the months of April and June.
During the time period under consideration, DDEx’s total client base expanded by 10%.
DBS expanding to current customers
The bank is still allowing access to its current clientele even though it changed its stance and opted not to offer bitcoin services to retail customers in April, citing regulatory problems as a short-term barrier.
DBS has announced that it would soon start providing self-directed trading to eligible clients.
Lionel Lim, the CEO of DDeX, said:
“What we are seeing in the digital asset industry is a great reset as the investment narrative shifts decisively away from the chase for yield. Investors today are instead seeking out safe harbors to trade and store their digital assets amid the ongoing market volatility.”
DBS joins the crypto industry
The financial organization received preliminary approval from the Monetary Authority of Singapore (MAS) in August 2021 to offer trading services for digital payment tokens.
After creating an institutional digital asset trading desk in 2021, the bank then announced plans to introduce a retail cryptocurrency trading desk by the end of the year.
Although the bank predicted it will be operating by the end of 2022, CEO Piyush Gupta recognized that there is still more work to be done.
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