Singapore’s DBS Bank is set to introduce over-the-counter (OTC) crypto options trading and structured notes for its institutional and accredited wealth clients.
According to a June 17 press release, DBS plans to launch these products in the fourth quarter of 2024. This initiative makes DBS the first Asian-headquartered bank to offer financial instruments linked to Bitcoin and Ethereum prices.
The new offerings will complement DBS’s existing digital asset services on its Digital Exchange (DDEx). Clients will soon be able to build their crypto exposure through options trading and structured notes.
Depending on market movements and product structure, these products may allow investors to earn yield on fiat currency or receive the underlying cryptocurrency.
DBS offers new crypto investment opportunities for clients
The new options for clients already holding Bitcoin or Ethereum with DBS will provide tools to hedge against market volatility. They also offer the potential to generate yield. For instance, a put option could allow a client to sell Bitcoin at a predetermined price in the future. This offers protection against price drops.
DBS’s Group Head of Trading and Structuring, Jacky Tai, emphasized the growing interest from professional investors in digital assets. He highlighted the bank’s strong credit ratings and structuring expertise as key factors. These elements provide clients with trusted, institutional-grade access to the crypto ecosystem.
The launch coincides with significant growth in the cryptocurrency market, which saw a 50% increase in market cap in the first five months of 2024. During this time, DDEx’s traded digital assets nearly tripled compared to 2023, with a 36% rise in active trading clients and an 80% increase in assets under custody.
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