DBS, a Singapore-based client financial institution, reported optimistic figures within the variety of market individuals and the quantity of cryptocurrency being custodised on its digital change, regardless of the looming market volatility.
Whereas the market is often related to declining worth and volatility, DBS’s figures present that the variety of market individuals and the quantities being parked within the DBS digital change (DDEx) are each rising positively.
In keeping with stories, DBS noticed an 80 per cent year-on-year progress within the variety of Bitcoin trades on the DDEx in 2022, whereas additionally noting an identical 65 per cent enhance within the variety of Ethereum trades.
DBS’s digital asset custody resolution doubled the quantity of Bitcoin being custodised throughout this era and grew the variety of Ethereum being custodised by over 60 per cent.
That is in view of the financial institution doubling its DDEx buyer base throughout 2022, now together with near 1,200 registered change individuals; as of 31 December final yr.
Weathering the storm
Cryptocurrency’s volatility was final yr’s worst-kept secret, with customers across the globe feeling the complete drive of ‘capital in danger’ throughout 2022; accentuated by the astonishing collapse of FTX.
But if something, these figures from DBS seem to point out that the market volatility has had little impact on the boldness of Singapore buyers, who’ve come more and more drawn to the regulated and safe buying and selling setting provided by DBS.
In late September, the financial institution started to experiment with broadening entry to the DDEx with its self-directed cryptocurrency buying and selling function, whereas in October, DDEx availed cryptocurrency buying and selling for Polkadot (DOT) and Cardano (ADA), bringing the entire variety of cryptocurrencies out there for spot buying and selling to 6 – along with BTC, ETH, Bitcoin Money (BCH) and XRP.
Then by November final yr, the financial institution efficiently examined the buying and selling of tokenised authorities bonds and different digital belongings on the blockchain.
Whereas these actions demonstrated the reliability of DDEx, additionally they offered the financial institution’s lively participation in greatest market practices. On this means, the change itself doesn’t maintain any of its custodised belongings, however reasonably, locations all digital belongings individually inside institutional-grade chilly wallets.
Along with this, the financial institution additionally conducts coin purity checks on all digital belongings getting into its custody and stays compliant with anti-money laundering (AML) and know-your-customer (KYC) requirements.
“Since inception in 2020, now we have taken a prudent and measured strategy in the direction of creating our digital asset ecosystem, selecting to maintain tempo with the market because it matures and as buyers develop into extra subtle,” explains Lionel Lim, CEO of the DDEx.
Lim shares his perception that the market has “decisively shifted its focus in the direction of belief and stability, particularly within the wake of a number of scandals which have rocked the trade.”
“As a regulated digital change backed by the DBS Group,” he continues, “we provide many distinctive benefits that buyers have come to understand as they search dependable gateways to entry the digital asset economic system.”
DDEx continues to be a members-only change serving company and institutional buyers, accredited buyers and household places of work, who’re typically higher in a position to handle market dangers.
Consequently, DBS didn’t observe any main selloffs in 2022, with DDEx observing a net-buy place for its clients all through the second half of the yr.
Commenting on alternatives within the safety token providing (STO) area, Lim reveals that in 2022, the financial institution skilled “rising curiosity from our company shoppers and was actively working in the direction of changing numerous enquiries into STOs.”
Nonetheless, the market volatility in addition to macroeconomic uncertainty in the end brought about DBS to place its operations in STOs on maintain. “We are going to proceed to work with these potential issuers in addition to discover origination alternatives for high-quality STO listings in 2023,” confirms Lim.