Recently, blockchain analysis firm Nansen uncovered that DBS Bank, a major banking institution in Singapore, is making waves in the cryptocurrency space. Nansen’s findings revealed that a crypto wallet linked to DBS Bank contains a staggering 173,753 Ether (ETH), valued at approximately $650 million. The wallet, which came under Nansen’s radar on May 30th, has already seen a profit of $200 million from its Ether holdings. While DBS Bank has not officially acknowledged owning the ETH, speculations suggest that the assets could be associated with its digital exchange targeting accredited investors. It’s believed that the bank is holding the ETH on behalf of investors rather than as direct bank assets.
DBS Bank has been actively involved in the cryptocurrency sector, offering a range of services to cater to the growing demand for digital assets. These services include digital asset custody, a trading exchange for security tokens, and a portfolio management app that blends traditional and crypto assets seamlessly. In 2020, the bank rolled out a crypto trading and custody service along with a platform for conducting security token offerings. Despite clarifying that it would not retain any assets on the exchange, DBS Bank highlighted its custodial services provided by its globally recognized custodial division. The bank’s services cover major cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum Classic, and Ether.
Since its foray into the crypto sector, DBS Bank has witnessed remarkable growth and expansion. In 2022, the bank reported a significant four-fold increase in Bitcoin purchases on its digital exchange, effectively doubling the total trading volume between April and June of that year. Subsequently, in 2023, DBS Bank saw an 80% surge in Bitcoin trading volume, attributing the spike to the aftermath of the crypto market downturn in 2022. Beyond cryptocurrencies, DBS Bank has extended its digital currency initiatives to government-related Web3 projects in Singapore, such as Project Guardian. This innovative project successfully transacted tokenized Singapore dollars using tokenized Japanese yen.
Moreover, DBS Bank is participating in Project Orchid for government vouchers and has conducted a pioneering cross-border e-Chinese yuan transaction trial for cargo shipments between Singapore and India. In addition, its Chinese subsidiary, DBS Bank China, rolled out an e-CNY merchant solution enabling businesses to accept payments in the digital currency of the People’s Bank of China. The bank’s commitment to innovation is further reflected in its provision of trading exchanges for security tokens and a portfolio management app tailored to both traditional and decentralized finance (DeFi) assets.
DBS Bank’s strategic ventures and robust presence in the cryptocurrency sector underscore its commitment to fostering financial innovation and reshaping the digital economy landscape.
