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DBS Digital Exchange (DDEx), DBS Bank’s digital asset custody business, has reported “robust growth,” saying that investors have been picking up buying opportunities amid a downturn in the crypto markets.
According to the exchange, the total number of trades executed on DDEx in June 2022 was more than double that of April 2022. Buys accounted for over 90% of trades on DDEx in June 2022, DBS said.
Bitcoin seemed to be the cryptocurrency of choice among investors – the quantity of BTC bought on DDEx in June 2022 was nearly four times that of April 2022. Similarly, the quantity of ETH bought on DDEx in June 2022 was 65% higher than that of April 2022, the bank said, without citing absolute numbers.
In the two months from 30 April, the number of BTC under custody at DDEx grew by about 30%, while the number of ETH under custody grew by about 3%.
“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,” Lionel Lim, DDEx chief executive officer, said in a statement.
Launched in 2021, the Singaporean bank’s digital asset exchange experienced its first substantial growth in the final quarter of 2021. DBS is Singapore’s first and only bank to have a digital asset exchange, and is one of 10 crypto service providers licensed by the Monetary Authority of Singapore.
DDEx serves corporate and institutional investors, accredited investors and family offices. It u-turned on plans to offer services to retail customers, saying in April that regulatory concerns were a hurdle.
The bank said it is “on track” to roll out self-directed trading for accredited investors in the coming months, affording them greater control over their digital asset portfolios.