DBS Digital Exchange (DDEx), among the first bank-backed digital asset exchanges, said Tuesday its trading value topped S$1.1 billion ($816.5 million) in 2021.
The members-only exchange targets institutional and accredited investors with a regulated and secure platform for digital assets, the bank said in a press release. The services include payments, settlements, secondary trading and institutional-grade custody.
The exchange, launched in December 2020, posted a pickup in volume after it went 24/7 in August, with fourth quarter accounting for S$800 million of the trading value, up five times from the third quarter, DBS said.
Custody assets also rise
DBS said its digital assets under custody rose above S$800 million at the end of December, up four times from the end of September.
Lionel Lim, CEO of DDEx, said the exchange has seen «strong interest» as customers seek a secure option for accessing digital assets and cryptocurrencies.
«We will be scaling our business to serve a larger target pool of customers, leveraging DBS’ digital asset ecosystem and deep investor base. We also aim to list more digital payment tokens and STOs for trading,» Lim said. «Our sustainable growth trajectory will help grow the market for digital assets in the region, which in turn contributes to deepening Singapore’s expertise and stature as a global hub for digital assets.»
Singapore regulators keep watch
DDEx's members-only status will allow it to fly under the radar of guidelines from the Monetary Authority of Singapore (MAS) in January which discouraged cryptocurrency promotion to the general public. The MAS said trading cryptocurrencies isn't suitable for the general public as it's highly risky and subject to sharp swings.
The city-state, while encouraging the development of digital assets, has seen cryptocurrency titan Binance pull out of Singapore, shuttering trading on 13 February. That followed Binance withdrawing its application for Singapore operations after failing to get a go-ahead for months, even as smaller exchanges were approved.
In October, DBS Vickers, the brokerage arm of DBS Bank and a member of DDEx, received formal approval from the MAS to provide payment token services as a major payment institution. That allowed DBS Vickers to directly support asset managers and companies trading in digital payment tokens via DDEx.
