Bitcoin buying and selling up 80% at DBS Financial institution as a consequence of crypto crashes in 2022, says exec
Singapore government-owned megabank DBS is among the many few corporations all over the world that reaped main advantages from huge cryptocurrency collapses in 2022.
DBS Digital Alternate, DBS Financial institution’s institutional crypto buying and selling platform, noticed a major improve in Bitcoin (BTC) buying and selling volumes final 12 months. In keeping with DBS Digital Alternate CEO Lionel Lim, the variety of DBS crypto purchasers greater than doubled in 2022 in comparison with the earlier 12 months.
“Bitcoin buying and selling volumes grew 80% on the digital change throughout the identical interval,” Lim stated in an interview with Cointelegraph on Could 8.
The chief believes that the spike in demand for crypto providers at DBS Digital Alternate is a consequence of crypto change collapses in 2022. Lim famous that DBS continues seeing a rising pattern in volumes. He acknowledged:
“DBS continues to profit from the flight to security and high quality following the implosion of a number of exchanges final 12 months.”
Evy Theunis, head of digital belongings at DBS Financial institution, additionally advised Cointelegraph that DBS has seen extra cooperation enquiries from digital asset and blockchain companies in latest months.
Launched in 2020, DBS’ cryptocurrency change serves completely institutional buyers. Regardless of contemplating increasing providers to retail prospects final 12 months, DBS continues to be a members-only change serving company and institutional buyers as of Could 2023, Lim famous.
FTX is without doubt one of the greatest crypto exchanges that subsided in 2022. Earlier than FTX collapsed in November 2022, the platform traded a major quantity of crypto coming from institutional buyers. In March 2022, FTX launched a devoted unit working with establishments. On the time, about two-thirds of buying and selling volumes on FTX and FTX US have been reportedly coming from institutional accounts.
Whereas indicating a optimistic influence from crypto change crashes in 2022, DBS Digital Alternate CEO sees no affect coming from the continued banking disaster in the US.
Associated: Concern over banking disaster reaches ranges unseen since 2008 — Ballot
“A few of our market makers sought new USD banking rails following the collapse of the crypto-friendly US banks,” Lim stated. Nonetheless, there was no direct influence on DBS’ crypto change, he famous, stating:
“The collapse of the US banks has not impacted our product and repair pipeline. That stated, we hold a detailed watch on these developments and are ready to regulate our plans if vital.”
Whereas being a crypto-friendly financial institution itself, DBS isn’t frightened about any dangers allegedly stemming from its crypto publicity.
“DBS doesn’t rehypothecate or commerce digital belongings in purchasers’ custody. As such, there isn’t a liquidity threat,” Lim advised Cointelegraph. “Our purchasers’ digital belongings are in custody with DBS Financial institution, separate from DBS Digital Alternate,” the CEO famous.
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