A representative from DBS emailed Decrypt to notify the news outlet that the bank did not record the position in question.
The biggest Singaporean bank, DBS, may have been a whale with $650 million in Ethereum if it had been. That would have been very optimistic for Ethereum. But the bank says that’s not true.
A representative from DBS emailed Decrypt to notify the news outlet that the bank did not record the position in question.
Nansen, a blockchain analytics company, is the source of the post in question. Early Thursday morning, the company announced on Twitter that they had connected an Ethereum wallet to the bank.
Edward Wilson, an analyst from Nansen, informed Decrypt that they had “excellent authority” from many sources, indicating that DBS has the private key to this wallet and that these assets are likely part of their custody solution. This may be analogous to the way non-crypto native financial institutions hold digital assets for their customers and crypto native institutions like Binance and Coinbase hold funds for their consumers. Perhaps the institution is acting as a custodian and is in charge of overseeing the safety of the money.
The representative from the bank chose not to answer when questioned if the wallet is indeed one that the bank uses to hold cryptocurrency for its customers.
Even if DBS were to retain Ethereum only for its customers, it would still be a conceivable scenario. Its history as an early adopter of cryptocurrency is extensive.
At the time of writing, the market value of the Singaporean bank was $75 billion, up significantly from $63 billion at the beginning of the year. Last summer, it bolstered the e-CNY, China’s CBDC. With the introduction of its DBS Digital Exchange in 2020, the Singaporean corporation took advantage of the fact that many banks were still preventing cryptocurrency transactions.
In response to customer demand, the bank expanded its offerings to include a custody service in addition to the exchange.
Last year, DBS said that the amount of Bitcoin traded on its DBS Digital Exchange increased by 80% in 2022.
Shares of DBS are now trading at $35.85 SGD, or around $26.55 USD, as of this writing. Ethereum is selling for $3,756.96 right now. It’s down 1.5 percent from yesterday, but up 25 percent since last week, when the SEC authorized Ethereum spot ETFs for trading on exchanges.
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