DBS Sees 80% BTC Trading Surge on DDEx Exchange in 2022

Wednesday, 15/02/2023 | 09:15 GMT by Damian Chmiel
  • Additionally, ETH trading volumes rose by 65%.
  • However, dollar-denominated turnover stayed the same due to the visible crypto price slump last year.
DBS

DBS Group Holdings, an investment holding company from Singapore, announced on Wednesday that its DBS Digital Exchange (DDEx) crypto exchange Bitcoin (BTC) trading volumes rose 80% year-over-year (YoY). Additionally, the number of tokens held in custody increased twofold.

DBS Crypto Exchange Reports Trading Surge

Additionally, the press release stated that Ethereum (ETH) trading volumes rose, achieving a 65% YoY growth. The exchange did not provide exact dollar figures for the volumes, but they are similar to figures from a year ago due to substantial price declines for major digital assets in 2022. Over the course of 2022, bitcoin lost almost 70%, starting the year at $46,000 and ending below $17,000.

"The market has decisively shifted its focus towards trust and stability, especially in the wake of multiple scandals that have rocked the industry," Lionel Lim, the CEO of the DBS Digital Exchange, commented.

Lim was referring to the collapse of the Terra ecosystem in May and the collapse of the cryptocurrency exchange FTX in November. The platform he represents benefited from the fact that digital assets investors were looking for a safe platform where they could continue to trade in the face of heightened volatility.

Two Years of DDEx Growth

DBS, the biggest lender in Southeast Asia, decided to set up its digital assets trading platform relatively early compared to other traditional finance giants. DDEx started its operation in late 2020, aiming at institutional and 'elite' retail investors. It was one of the first cryptocurrency exchanges in the world to be 100% created and managed by a traditional bank.

Betting on the continued growth of its crypto exchange, DBS said this week that it plans to apply for a license to allow it to offer cryptocurrencies to Hong Kong customers.

"We are planning to apply for a licence in Hong Kong so that the bank could sell digital assets to our Hong Kong customers," Sebastian Paredes, the CEO of Hong Kong's DBS Bank, commented on Monday's press briefing.

The move comes as Hong Kong takes steps to attract more cryptocurrency firms in a bid to become a regional crypto hub. As local regulations become transparent, DBS wants to become one of the banks interested in jointly building a new foothold in the digital asset industry.

The institution has been working on developing security-token offerings (STOs), but it has decided to postpone them for the time being due to the current macroeconomic uncertainties and crisis in the industry. However, it intends to resume work on STO listings later this year.

Watch the recent FMLS22 panel titled "To Crypto or Not to Crypto: Will Crypto Fizzle Out of Here to Stay?"

DBS Bets on Crypto and Blockchain Industry

Before launching its own cryptocurrency exchange, DBS had already been involved in digital asset projects and blockchain technology. In May 2020, it became the first bank from Singapore to join the Contour trade-finance blockchain network, which is built on R3's Corda.

A year later, the bank partnered with JPMorgan and Temasek to launch a blockchain-based cross-border payments platform. In the same year, it began issuing blockchain bonds called DBS Digital Bonds.

In early 2022, DBS announced its plans to extend its existing exchange offering to retail investors. The move was supposed to take place by the end of last year but has been put on hold due to the previously mentioned turmoil.

DBS Group Holdings, an investment holding company from Singapore, announced on Wednesday that its DBS Digital Exchange (DDEx) crypto exchange Bitcoin (BTC) trading volumes rose 80% year-over-year (YoY). Additionally, the number of tokens held in custody increased twofold.

DBS Crypto Exchange Reports Trading Surge

Additionally, the press release stated that Ethereum (ETH) trading volumes rose, achieving a 65% YoY growth. The exchange did not provide exact dollar figures for the volumes, but they are similar to figures from a year ago due to substantial price declines for major digital assets in 2022. Over the course of 2022, bitcoin lost almost 70%, starting the year at $46,000 and ending below $17,000.

"The market has decisively shifted its focus towards trust and stability, especially in the wake of multiple scandals that have rocked the industry," Lionel Lim, the CEO of the DBS Digital Exchange, commented.

Lim was referring to the collapse of the Terra ecosystem in May and the collapse of the cryptocurrency exchange FTX in November. The platform he represents benefited from the fact that digital assets investors were looking for a safe platform where they could continue to trade in the face of heightened volatility.

Two Years of DDEx Growth

DBS, the biggest lender in Southeast Asia, decided to set up its digital assets trading platform relatively early compared to other traditional finance giants. DDEx started its operation in late 2020, aiming at institutional and 'elite' retail investors. It was one of the first cryptocurrency exchanges in the world to be 100% created and managed by a traditional bank.

Betting on the continued growth of its crypto exchange, DBS said this week that it plans to apply for a license to allow it to offer cryptocurrencies to Hong Kong customers.

"We are planning to apply for a licence in Hong Kong so that the bank could sell digital assets to our Hong Kong customers," Sebastian Paredes, the CEO of Hong Kong's DBS Bank, commented on Monday's press briefing.

The move comes as Hong Kong takes steps to attract more cryptocurrency firms in a bid to become a regional crypto hub. As local regulations become transparent, DBS wants to become one of the banks interested in jointly building a new foothold in the digital asset industry.

The institution has been working on developing security-token offerings (STOs), but it has decided to postpone them for the time being due to the current macroeconomic uncertainties and crisis in the industry. However, it intends to resume work on STO listings later this year.

Watch the recent FMLS22 panel titled "To Crypto or Not to Crypto: Will Crypto Fizzle Out of Here to Stay?"

DBS Bets on Crypto and Blockchain Industry

Before launching its own cryptocurrency exchange, DBS had already been involved in digital asset projects and blockchain technology. In May 2020, it became the first bank from Singapore to join the Contour trade-finance blockchain network, which is built on R3's Corda.

A year later, the bank partnered with JPMorgan and Temasek to launch a blockchain-based cross-border payments platform. In the same year, it began issuing blockchain bonds called DBS Digital Bonds.

In early 2022, DBS announced its plans to extend its existing exchange offering to retail investors. The move was supposed to take place by the end of last year but has been put on hold due to the previously mentioned turmoil.

About the Author: Damian Chmiel
Damian Chmiel
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About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 1593 Articles
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