DBS Bank Reports Bitcoin Trading Is Up 80%

By Kevin • May 12, 2023 3:37 pm • Comments

Data from Singapore megabank DBS shows that Bitcoin and crypto trading is up 80% despite the market crashes that happened last year.

In fact, institutional clients had more than doubled which indicates that institutional demand has remained strong regardless of market performance.

This trend in growing volume seems to be continuing even in 2023 which indicates that growth is organic and adoption is increasing.

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It is expected that more and more institutional investors will continue to be onboarded on DBS Bank’s trading platform.

This is good news for crypto exchanges and firms in regions of the world where regulation supports the industry.

CoinTelegraph reports:

Launched in 2020, DBS’ cryptocurrency exchange initially served exclusively institutional investors. In September 2022, DBS Digital Exchange expanded access to its products to accredited investors, who are individuals.

The digital asset platform currently provides services to corporate and institutional investors, accredited investors and family offices.

Before FTX collapsed in November 2022, a significant amount of crypto trading on the platform came from institutional investors. In March 2022, FTX launched a dedicated unit working with institutions. At the time, about two-thirds of trading volumes on FTX and FTX US were reportedly coming from institutional accounts.

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.

The fact that there has been no impact despite the banking crisis that had happened in the US is also a strong signal that the industry will benefit.

After all, it is an alternative for many institutional investors as opposed to using traditional banking services to store capital.

DBS considers itself a crypto-friendly bank and has stated that there is no significant risk for being exposed to crypto.

This is due to the fact that having another asset class is a good strategy for diversification and liquidity risks exist even for banks that do not have crypto exposure.

More and more banks make take the same strategy as DBS in the future if it is proven to be successful.

CoinTelegraph concludes:

“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.”

While being a crypto-friendly bank itself, DBS believes that there are no liquidity risks associated with its cryptocurrency exposure.

“DBS does not rehypothecate or trade digital assets in clients’ custody. As such, there is no liquidity risk,” Lim told Cointelegraph. “Our clients’ digital assets are in custody with DBS Bank, separate from DBS Digital Exchange,” the CEO noted.

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