The blockchain analysis firm Nansen recently unveiled a rather intriguing discovery – DBS Bank, one of Singapore’s leading banking institutions, has been identified as a cryptocurrency whale. A crypto wallet supposedly owned by DBS Bank holds a staggering 173,753 Ether (ETH), with a current market value of approximately $650 million. Notably, the address in question has already seen a paper profit of $200 million from its Ether holdings. While DBS Bank has not officially confirmed ownership of the ETH, speculation suggests that the assets may be associated with its digital exchange catering to accredited investors. It is believed that the bank holds the ETH on investors’ behalf rather than as direct bank assets.
DBS Bank’s Venture into the Cryptocurrency Sector
DBS Bank’s foray into the cryptocurrency space is not entirely surprising, given its diverse range of offerings in this domain. The bank provides various services such as digital asset custody, a trading exchange for security tokens, and a portfolio management app that seamlessly integrates traditional and crypto assets. Back in 2020, DBS Bank introduced a crypto trading and custody service alongside a platform for executing security token offerings. Notably, the bank clarified that while it would not retain any assets on the exchange, it would offer custody services to investors. All digital assets are safeguarded at DBS Bank, known globally for its custodial expertise, according to the bank’s statement. The services extended to encompass major cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum Classic, and Ether.
The Growth Trajectory of DBS Bank in the Cryptocurrency Space
In the subsequent years, DBS Bank’s crypto division has witnessed substantial growth. In 2022, the bank recorded a four-fold surge in Bitcoin transactions on its digital exchange, effectively doubling the total trades carried out between April and June 2022. Fast forward to 2023, and DBS Bank reported an 80% uptick in Bitcoin trading volume, attributing this surge to the market instability that ensued after the cryptocurrency downturn in 2022. Moreover, DBS Bank has extended its digital currency endeavors beyond cryptocurrencies, participating in government-linked Web3 initiatives in Singapore like Project Guardian. Notably, the initiative successfully acquired tokenized Singapore dollars using tokenized Japanese yen. The bank is also actively engaged in Project Orchid for government vouchers and conducted a cross-border e-Chinese yuan transaction test for shipments between Singapore and India. To add to its repertoire, DBS Bank China, the bank’s Chinese subsidiary, introduced an e-CNY merchant solution allowing businesses to accept payments in the central bank digital currency (CBDC). DBS Bank continues to provide trading exchanges for security tokens and a portfolio management app catering to both traditional and decentralized finance assets.