DBS’s digital asset ecosystem has benefitted from the flight to trusted and regulated platforms to access the digital asset market amid the recent “unprecedented volatility”.
According to the bank, its digital asset ecosystem reported “resilience” in its key business metrics in June compared to April, just when volatility in the cryptocurrency markets started increasing.
Among the numbers, it was found that the number of trades executed on the DBS Digital Exchange (DDEx) in June was more than double that of the number of trades in April.
The DDEx is a members-only exchange that serves corporate and institutional investors, accredited investors and family offices who are generally better able to manage the market risks.
Buys accounted for over 90% of the trades on DDEx in June.
There were also a higher number of Bitcoin purchased on the DDEx in June, which came up to nearly four times that of April.
Similarly, the quantity of Ethereum bought on the digital exchange stood 65% higher in June, than that of April’s.
In addition, the number of Bitcoin under custody in DDEx grew by about 30% as at June 30, compared to that as at April 30. The number of Ethereum under custody grew by around 3% during the same period.
The bank’s customer base for its digital exchange grew by 10% in June from April. Reverse inquiries from corporate and institutional investors also remained strong.
Going forward, DBS revealed that the DDEx is looking to roll out self-directed trading for accredited investors “in the coming months”. The move will allow such investors to have greater control over their digital asset portfolios, it adds.
On the better performance, Lionel Lim, CEO of DDEx says, “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 harbours to trade and store their digital assets amid the ongoing market volatility.”
He adds: “We believe that DDEx, as a regulated digital exchange backed by the DBS Group, and our broader digital asset ecosystem are well-poised to benefit from this shift as we continue to offer our customers a trusted and reliable gateway to the digital asset economy.”