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The crypto industry has been on a growth streak for several years now, and this development has reached the corporate world. While mainstream institutions might have shunned cryptocurrency about a decade ago, many are now getting involved in it.
Case in point, DBS Bank, a major banking institution in Singapore, has been rumored to be an Ether whale. This comes via a report from blockchain analysis firm Nansen which claims that the bank holds millions of dollars in Ether.
How DSB Could Be an Ether Whale
The crypto industry has a long-running fascination with token whales. The idea of a single person or entity holding massive amounts of a certain crypto has captured the industry’s attention and there are entire social media accounts dedicated to monitoring whale movement.
In a recent post on Twitter/X, Nansen said that it had identified DBS Bank as the owner of a token wallet holding about $739 million in Ether, including a $200 million profit from holding the token. These days, it is not unusual for institutions to hold crypto and even some pension funds have begun allocating a portion of their investment to digital assets.
DBS, however, has come out to deny the allegations.
“In relation to the post, DBS does not have this position on our books,” said a spokesperson for the bank, though they declined the comment on whether the wallet is owned by its digital exchange or custody solutions arm.
The bank has offered crypto custody solutions since 2020 and this, some believe, could explain the holdings. In a statement to CoinTelegraph, Nansen analyst Edward Wilson supported the notion that DBS Bank owns the private keys to the wallet and that it is connected to its custody services.
“This is similar to how we see institutions, both crypto-native like exchanges such as Binance or Coinbase custody funds on behalf of their users and non-crypto-native custody funds. The institution is the custodian and is responsible for managing the security of the funds,” he said.
It would also make sense as now is a profitable time to hold cryptocurrencies. Digital assets are being used more than ever, even outside of speculative trading. As James Fuller explains, there are more online casinos for Singaporean players than ever before and this drives up the demand for them. Others are even turning to anonymous casinos to get around any restrictions on token use.
In terms of merchants who accept crypto, this figure has been steadily growing for years, which benefits the various token ecosystems.
On top of this, major tokens like Bitcoin have seen massive market growth this year, even reaching a new all-time price high. Ether has also not been left out of all this success as it was just approved for a spot ETF in the United States, which many believe will lead to new price points for the token.
Crypto ETFs Come to Singapore
Still, on the subject of crypto ETFs, a recent development on the Singaporean front comes from MetaComp, a financial technology group based in the country. It recently signed a deal with Hong Kong-based Harvest Global Investments that will see crypto ETF funds made available to Singaporean investors. This will be done through Camp, an assets management platform owned by MetaComp.
The global appetite for crypto-focused ETFs has been growing for years, bolstered by the overall performance of major cryptos. The success that the US-based ETFs have seen has only contributed to this and thanks to this partnership, these products can be accessed more easily.
“With Harvest’s expertise in asset management and MetaComp’s robust capabilities in providing a comprehensive suite of digital payment solutions, we are poised to deliver unparalleled value to our clients and the market,” said Bo Bai, chair and co-founder of MetaComp.
Web3 in the Consumer Space
Outside of financial institutions, innovations tied to the web3 space are also being rolled out to consumers in Singapore. Most notably, McDonald’s has launched a new project called “My Happy Place” for Singaporean customers that allows them to interact virtually with others, design virtual burgers, and go on adventures.
Several other fast food brands like Taco Bell have launched metaverse experiences, including hosting a wedding in one. McDonald’s has also added a crypto element to this project as certain experiences in My Happy Plance are token-gated and users may integrate their crypto wallets into their experience.
In exchange for participating in the metaverse and completing challenges, users can win rewards such as free food and this is expected to drive its popularity. The platform, which was developed in partnership with Bandwagon Labs, will be live from June 6 to July 7, 2024, and depending on its performance, could inform future metaverse developments from the company.