Interest for cryptocurrency is high, blockchain a game changer
Earlier this week, Singapore’s largest bank, DBS, reported its latest results, reporting a 72% increase in net profit for the three months ending March 2021.
The bank also reported a net profit of S $ 2 billion for the same period, up from S $ 1.17 billion the year before.
Beyond simply highlighting the bank’s resumption of operations after COVID-19, CEO Piyush Gupta also revealed information about his digital cryptocurrency exchange which launched last year.
S $ 30 – $ 40 million daily trading volume
According to DBS, the digital exchange, which is currently only open to accredited investors, has a daily trading volume of between S $ 30 million and S $ 40 million. It currently has 120 investors on board.
DBS said it has “hundreds more, possibly thousands of clients waiting in line” to become an investor.
“We’re thinking a bit about how we integrate them, the same on the asset side,” said CEO Piyush Gupta.
By comparison, Binance, the world’s largest cryptocurrency exchange, has a daily trading volume of US $ 46 billion. The second largest exchange, Coinbase, has a daily trading volume of US $ 6 billion.
DBS sees great interest in cryptocurrency trading and digital curation capability
Asked about the potential growth of the digital exchange, CEO Piyush shared an optimistic view of the future of cryptocurrency.
I think, given the amount of interest in the four cryptos that we are currently trading, that interest is quite high. And therefore, I think it will resume. But whether it hits tens of millions or hundreds of millions in revenue over the next few years, it’s hard to say. So I think we should get in there, understand and grow, and then we’ll have a better idea of how big it might be over time.
Piyush Gupta, CEO of DBS
Beyond just trading cryptocurrency, the bank’s interest in allowing digital currency custody is also quite high.
“When it comes to digital custody, we are now getting a lot of approaches from other exchanges who want to use us for digital custody capacity because it is obviously superior,” Piyush said.
CEO Piyush: Blockchain is a game-changer for currency settlement
As DBS seeks to retain and gain more market share in the financial space, the bank is actively exploring new income opportunities.
Besides the digital exchange it launched last December, DBS also announced a partnership with Temasek and JP Morgan last week to build a new blockchain-based global payments platform.
Called Partior, it aims to disrupt the traditional star payment model of cross-border payments, resulting in more efficient payment clearing and settlement.
“What blockchain allows you to do is take it and democratize it on a large scale for any counterpart in the world. I’m not going to limit it to places defined in an arrangement. And, therefore, anyone on this platform can effectively pay in real time instantly. And so your security settlement, FX settlement, active payment settlement you do in real time. I think this is a game changer and it is much better than the current expat infrastructure, including the Swift infrastructure, ”added CEO Piyush.
Cryptocurrency and blockchain technology is a key content pillar for Vulcan Post, and we’ll continue to cover development in this space. You can follow our coverage here.
Featured Image Credit: CNBC
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