DBS Digital Asset Ecosystem Sees Strong Growth
DBS, the largest bank by assets in Southeast Asia, announced that its digital asset ecosystem, anchored by the DBS Digital Exchange (DDEx), has experienced strong growth after it began operating round-the-clock in August this year, enabling DDEx’s participants to trade on the bourse at any time.
In the first two full months of 24/7 operation, DDEx, which was launched in December 2020, recorded trading volumes surpassing its total trading volume of digital assets in the first eight months of the year by 40%. DBS also recorded over S$600 million ($444 million) in digital assets under custody as at the end of October, triple the amount recorded in the previous month.
In addition, DDEx has seen steady growth in the number of corporate and institutional customers among its participants, including established banking and financial institutions, a central bank, and even other digital asset exchanges. By participating in DDEx, digital asset exchanges gain round-the-clock access to a whole host of market makers trading on DDEx’s trusted platform.
Among other milestones, in May, DBS Private Bank rolled out Asia’s first bank-backed trust solution for cryptocurrencies. In June, DDEx listed its inaugural Security Token Offering in the form of an SGD 15 million digital bond. And in October, DBS Vickers, the brokerage arm of DBS Bank, became the first bank-backed brokerage to receive formal approval from the Monetary Authority of Singapore under the Payment Services Act 2019 to provide digital payment token services as a Major Payment Institution.
According to DBS, digital asset exchanges also benefit from adjacent strengths in its broader digital asset ecosystem. For instance, they can leverage the bank’s API solutions to provide frictionless payments and collections journeys for their own customers, or access the bank’s digital asset custody services. DDEx has onboarded over 500 participants to date, including family offices, accredited individuals, corporate and institutional investors, a central bank, and other digital exchanges. .
Noting that the strong momentum that DBS has seen in its digital asset business bodes well for Singapore’s ambition to become a key player in the global cryptocurrency economy, Eng-Kwok Seat Moey, Group Head of Capital Markets and Chair of the DBS Digital Exchange, commented: “Becoming a participant of DDEx opens many gateways for our customers to access the burgeoning cryptocurrency and digital asset economy. What DBS has established is a holistic ecosystem to serve the entire digital asset value chain, from deal origination to tokenization, listing, trading, and custody, all within a trusted and regulated bank environment. As Singapore continues to establish itself as a hub for digital asset businesses, DBS is leading the way by helping our customers capture value while staying true to our tenets of safety and security.”