Bitcoin trades at 80% in DBS Bank due to crypto crash in 2022, says manager

Singapore state-owned megabank DBS is among the few companies around the world that reaped huge benefits from massive cryptocurrency collapses in 2022.

DBS Digital Exchange, DBS Bank’s institutional crypto trading platform, saw a significant increase in trading volume for Bitcoin (BTC) last year. According to DBS Digital Exchange CEO Lionel Lim, the number of DBS crypto clients more than doubled in 2022 compared to the previous year.

“Bitcoin trading volumes grew 80% on the digital exchange during the same period,” Lim said in an interview with Cointelegraph on May 8.

The executive believes that the increase in demand for crypto services on DBS Digital Exchange is a consequence of the collapse of the crypto exchange in 2022. Lim noted that DBS continues to see an increasing trend in volumes. He stated:

“DBS continues to benefit from the flight to safety and quality following the implosion of several exchanges last year.”

Evy Theunis, head of digital assets at DBS Bank, also told Cointelegraph that DBS has seen more collaboration requests from digital assets and blockchain firms in recent months.

DBS’ cryptocurrency exchange was launched in 2020 and serves exclusively institutional investors. Despite considering expanding services to retail clients last year, DBS will continue to be a member exchange serving corporate and institutional investors from May 2023, Lim noted.

FTX is one of the largest crypto exchanges to decline in 2022. Before FTX collapsed in November 2022, the platform traded a significant amount of crypto from institutional investors. In March 2022, FTX launched a dedicated unit that works with institutions. At the time, approximately two-thirds of trading volume on FTX and FTX US came from institutional accounts.

Although it indicates a positive impact from the crypto exchange crash in 2022, the CEO of DBS Digital Exchange sees no impact from the ongoing US banking crisis.

Related: Concerns over banking crisis reach levels not seen since 2008 — Poll

“Some of our market makers sought new USD bank rails after the collapse of the crypto-friendly US banks,” Lim said. However, there has been no direct impact on DBS’s crypto exchange, he noted, stating:

“The collapse of the US banks has not affected our product and service pipeline. That said, we are closely monitoring these developments and are prepared to adjust our plans if necessary.”

Although DBS is a crypto-friendly bank, he is not concerned about any risks allegedly stemming from the crypto exposure.

“DBS does not remortgage or deal with digital assets in the customer’s custody. As such, there is no liquidity risk,” Lim told Cointelegraph. “Our customers’ digital assets are held in the custody of DBS Bank, separate from DBS Digital Exchange,” the CEO noted.

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