Banking giant DBS says Bitcoin trading is booming despite market volatility

Bitcoin (BTC) trading has been booming at Singapore’s DBS Bank, which saw volumes rise by 80% on Digital Exchange (DDEx) as a result of the recent decline in the value of cryptocurrencies and the various scandals that have plagued the industry.

As trading expanded, DBS saw an increase in the amount of Bitcoin and Ethereum (ETH) under its custody by more than 100% and 60% respectively, according to a report by Finextra published February 15.

In addition, DDEx had more than doubled the number of clients it served in 2022, reaching close to 1,200 participants registered on the exchange as of 31 December 2022.

Following the failure of FTX and related entities, DBS believes that the indicators represent a tendency among investors towards recognized and regulated platforms to access the market.

Using institutional quality cold wallets, DBS stores all digital assets under custody in a separate location within the bank itself. In addition to this, the bank ensures compliance with all applicable AML and KYC regulations by performing coin purity checks on all digital assets that are taken into custody.

According to Lionel Lim, CEO of DBS Digital Exchange:

“We believe that the market has shifted its focus in a decisive way towards trust and stability, especially in the wake of several scandals that have rocked the industry. As a regulated digital exchange backed by DBS Group, we offer many unique benefits that investors have appreciated when seeking reliable gateways to access the digital asset economy.”

Crypto trading so far a success for DBS

Since the rollout of self-managed cryptocurrency trading through DBS digibank in September, more than 90% of transactions conducted by the bank’s affluent customers are now done digitally. In the meantime, DDEx will maintain its status as a member exchange catering to family offices, accredited investors, corporate and institutional investors and other types of investors.

“In 2022, we saw increasing interest from our corporate customers and actively worked to convert a number of inquiries into STOs,” Lim said.

Finally, the increased interest in the Security Token Offering (STO) from DDEx’s corporate clients led the exchange to announce that it would investigate the origination of high-quality STO listings in 2023.