Crypto News – Nansen Estimates Crypto Wallet Profits $200 Million from ETH Holdings

Crypto News – Nansen Estimates Crypto Wallet Profits $200 Million from ETH Holdings

Crypto News – A cryptocurrency wallet, allegedly owned by multinational banking giant DBS Bank, reportedly holds over 170,000 Ether, with an approximate value of $650 million. On May 30, blockchain analytics firm Nansen identified an Ethereum “whale,” attributing it to the Singapore-based financial institution. Nansen’s analysis suggests that the wallet, which they believe belongs to DBS, has already generated $200 million in profit from its Ether holdings.

Cointelegraph reached out to DBS Bank for a statement but has yet to receive a response.

DBS Wallet and Investor Assets

Although DBS Bank has not confirmed ownership of the Ether, speculation suggests it might be tied to DBS’s digital exchange for accredited investors. One community member speculated that the Ether could represent assets held on behalf of investors rather than the bank’s own assets.

While Nansen did not disclose the specifics of their discovery, they indicated the information came from a “reliable source.” Edward Wilson, a Nansen analyst, stated that DBS holds the private key for the wallet, indicating it is part of the bank’s custody solution. Wilson elaborated:

“This situation is akin to how both crypto-native institutions, such as exchanges like Binance or Coinbase, and non-crypto-native institutions manage custody funds on behalf of their users. The institution acts as the custodian, ensuring the security of the funds.”

In 2020, DBS Bank unveiled its crypto trading and custody service alongside a platform for security token offerings. At the launch, DBS Exchange emphasized that the exchange would not directly hold assets but would provide custody services for investors.

“All digital assets are held at DBS Bank, renowned globally for its custodial services,” the bank stated. At that time, DBS also indicated support for major cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum Classic, and Ether.

DBS Bank’s Growing Trading Volume

Since its inception, DBS Bank‘s crypto division has seen substantial success. In 2022, DBS reported a four-fold increase in Bitcoin purchases on its digital exchange. The total number of trades more than doubled between April and June 2022.

In 2023, DBS noted an 80% increase in Bitcoin trading volume, attributing this surge to the crypto market downturns experienced in 2022.

In July 2023, DBS Bank introduced a digital yuan transaction tool, executing its first transaction for corporate clients. DBS Bank China, the bank’s Chinese arm, announced the launch of its e-CNY merchant solution, enabling businesses to accept payments using the central bank digital currency (CBDC).