- Singapore’s DBS Bank launches over-the-counter (OTC) cryptocurrency options trading and structured notes for institutional clients, becoming the first Asian bank to offer such products tied to Bitcoin and Ethereum prices.
- The new offerings allow clients to hedge against volatility and potentially earn yield through options strategies on their Bitcoin and Ethereum holdings with DBS.
- DBS Digital Exchange (DDEx) saw a surge in trading activity, with a 36% increase in active clients and a 50% rise in cryptocurrency market capitalization in the first five months of 2024.
Singapore’s largest bank DBS recently announced the launch of over-the-counter (OTC) cryptocurrency options trading and structured notes. This makes DBS the first Asian-headquartered bank to offer financial products tied to Bitcoin and Ethereum prices.
DBS Launching Cryptocurrency Derivatives
The new products will be available starting Q4 2024 and are designed for institutional investors looking to expand their digital asset exposure while managing risk.
The launch comes as interest in cryptocurrencies has surged this year. DBS’s own digital exchange DDEx saw a 36% increase in active trading clients in the first half of 2024. The total value of digital assets traded on DDEx in Singapore dollar terms nearly tripled over the same period.
Helping Clients Hedge Volatility
By offering options trading, DBS clients holding Bitcoin or Ethereum can hedge against volatility and earn yield through advanced options strategies.
Jacky Tai, Group Head of Trading and Structuring at DBS, said “professional investors are increasingly allocating to digital assets in their portfolios” and these new offerings provide “trusted institutional-grade access to the digital asset ecosystem.”
Conclusion
The launch of crypto options trading and structured notes marks a milestone for DBS as the bank expands its services in the fast-growing digital asset space. With crypto adoption accelerating, especially among institutional investors, DBS is positioning itself at the forefront of this emerging asset class in Asia.
