DBS exchange says Bitcoin trading surges 80% amid crypto winter

DBS Group Holdings reported an uptick in Bitcoin trading volume on its digital exchange last year amid a broader decline in cryptocurrency prices.

The number of Bitcoin traded on the DBS Digital Exchange surged 80 per cent last year, while the number in custody as of Dec 31 more than doubled from a year earlier, according to a statement on Wednesday (Feb 15).

Crypto markets are battling a downturn after implosions such as that of hedge fund Three Arrows Capital and Sam Bankman-Fried’s exchange FTX battered confidence in the sector. DBS said it is a beneficiary of a flight to safety amid the volatility.

“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, CEO of the DBS Digital Exchange, said in the statement.

South-east Asia’s biggest lender, which set up the exchange in late 2020, was a relatively early entrant from traditional finance. It continues to look for opportunities in the space, earlier this week saying it plans to apply for a licence to allow it to offer crypto to Hong Kong customers.

Lim said efforts around security-token offerings were put on hold, given market volatility and macroeconomic uncertainty, but DBS will work towards opportunities for “high-quality STO listings in 2023”. BLOOMBERG