DBS Bank, a multinational banking and financial services company, is rumored to own a crypto wallet containing more than 170,000 Ether, valued at around $650 million. This revelation came from blockchain analysis firm Nansen, which identified DBS as the owner of the wallet. Nansen estimates that the bank has already made a profit of $200 million from its Ether holdings.
However, DBS denies this claim. A spokesperson from the bank stated that they do not have any such position in relation to the Nansen post. When asked about the bank’s digital exchange or custody solutions, the spokesperson declined to comment.
While DBS did not confirm ownership of the ETH, some speculate that it could belong to their digital exchange for accredited investors. It is possible that the wallet holds assets on behalf of investors rather than being bank-owned.
Nansen did not disclose the source of their information, but they assured that it came from a reliable source. Nansen analyst Edward Wilson believes that DBS owns the private key to the wallet, suggesting that it is part of the bank’s custody solution.
DBS Bank introduced its crypto trading and custody service in 2020, along with a platform for security token offerings. The bank emphasized that it would not hold any assets on the exchange but would provide custody services. They also stated that all digital assets would be kept at DBS Bank, known for its custodial services.
The crypto division of DBS Bank has experienced significant growth since its inception. In 2022, the bank reported a four-fold increase in Bitcoin purchases on its digital exchange, with total trades more than doubling in June compared to April. In 2023, DBS reported an 80% growth in Bitcoin trading volume, which was attributed to the crypto market crashes in 2022.
In July 2023, DBS Bank launched a digital yuan transaction tool and conducted its first transaction for corporate clients. Its Chinese arm, DBS Bank China, also announced the launch of its e-CNY merchant solution, enabling businesses to receive payments using the central bank digital currency (CBDC).
In other news, a Hong Kong streaming firm plans to invest $100 million in cryptocurrencies, while Worldcoin faces sanctions.