Despite volatility in the cryptocurrency markets over the past few months, Singapore’s DBS bank’s brokerage arm DBS Digital Exchange (DDEx), a members-only platform for institutional and professional investors, observed a considerable increase in the number of trades conducted throughout June.
The overall number of transactions on DBS Digital Exchange more than quadrupled in June compared to April, with purchase orders accounting for 90% of trades. When compared to April 2022, the amount of Ethereum (ETH) acquired in June 2022 increased by 65%, while the number of Bitcoin (BTC) purchases quadrupled according to a statement by the bank, Finews.Asia reported on August 23.
Additionally, DBS saw an increase in demand for its custody services, which are responsible for the independent storage of digital assets inside the bank. Between the months of April and June, the quantity of bitcoin and ether that was held in custody increased by around 30% and 3% , respectively.
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Meanwhile, the total number of DDEx’s customers increased by 10% throughout the time period in question.
DBS opening up to existing clientele
Despite the fact that the bank changed its mind in April and decided not to extend cryptocurrency services to retail consumers, citing regulatory issues as a short-term obstacle, the bank is continuing open up access for its current client base.
DBS has announced that it would begin offering self-directed trading to qualified clients in the coming months.
DDeX chief executive Lionel Lim stated:
“What we are seeing in the digital asset industry is a great reset as the investment narrative shifts decisively away from the chase for yield. Investors today are instead seeking out safe harbors to trade and store their digital assets amid the ongoing market volatility.”
DBS enters the crypto space
The financial entity acquired in-principle clearance from the Monetary Authority of Singapore (MAS) to provide trading services for digital payment tokens in August 2021.
Notably, the bank then outlined plans to launch a retail crypto trading desk by the end of the year after opening an institutional digital asset trading desk back in 2021.
CEO Piyush Gupta acknowledged that there is still more work to be done, but the bank estimated that it would be operational by the end of 2022.
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