Singaporean bank DBS is one of the few companies in the world that stands to benefit enormously from a massive collapse of the cryptocurrency industry in 2022.
DBS Digital Exchange, a digital currency trading platform owned by DBS Bank, saw a significant increase in transaction volume last year. According to DBS CEO Lionel Lim, the amount of bitcoin DBS stores for its customers will more than double in 2022 from the previous year.
“Bitcoin volume on digital exchanges has grown by 80 percent over the same period,” Lim told Cointelegraph on May 8. The CEO sees demand for the service. DBS Digital Exchange’s cryptocurrency surge is due to the collapse of the cryptocurrency exchange in 2022. Lim emphasized that DBS continues to embrace the trend of growing transaction volumes.
DBS Bank CEO, Lionel Lim
“DBS continues to benefit in terms of safety and quality following the collapse of several exchanges last year,” he said.
Evy Theunis, head of digital assets at DBS Bank, also told Cointelegraph that DBS Bank has received more cooperation requests from blockchain and digital asset companies in recent months.
Launched in 2020, DBS’s cryptocurrency exchange was initially only available to institutional investors. In September 2022, DBS Digital Exchange will be launched Expand access into its products for individual investors. The digital asset platform currently serves institutional and corporate investors, accredited individual investors and family offices.
Before the FTX crash in November 2022, there was a large number of cryptocurrency transactions from institutional investors on the platform. In March 2022, FTX established a department dedicated to working with organizations. At the time, it was believed that about two-thirds of FTX and FTX US’s trading volume came from institutional accounts.
While pointing to the positive impact of the collapse of cryptocurrency exchanges in 2022, Lim sees no impact from the ongoing banking crisis in the United States. “After the collapse of a crypto-friendly bank in the US, some of our market makers have been looking for new banks,” Lim said. However, DBS Bank’s cryptocurrency exchange was not directly affected, noting: “The collapse of Bank of America has not affected our product and service systems. This means that we are closely monitoring these developments and are prepared to adjust if necessary.” our plan.”
Although DBS itself is a cryptocurrency-friendly bank, it believes that there is no liquidity risk associated with exposure to cryptocurrencies. “DBS does not withdraw or trade digital assets under the supervision of customers. Therefore, there is no liquidity risk,” Lim told Cointelegraph. “Our customers’ digital assets are held by DBS Bank, which is separate from DBS Digital Exchange,” the CEO noted.
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As reported by Cointelegraph
