Singapore's largest bank DBS on Tuesday announced its launch of over-the-counter (OTC) cryptocurrency options trading and structured notes, becoming the first Asian-headquartered bank to offer financial products tied to Bitcoin BTC/USD and Ethereum ETH/USD prices.
What Happened: These products, available from Q4 2024, are tailored for institutional investors and accredited wealth clients looking to expand their exposure to the digital asset class while managing risk.
DBS’ move comes at a time when interest in digital assets has surged.
In a release, Jacky Tai, Group Head of Trading and Structuring at DBS said professional investors are increasingly allocating to digital assets in their portfolios and that these financial products provide trusted, institutional-grade access to the digital asset ecosystem, allowing clients to better manage their portfolios.
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By offering options trading, clients holding Bitcoin or Ethereum with DBS can hedge against volatility and potentially earn yield through advanced options structures, such as put options.
The timing of this launch coincides with significant growth in the cryptocurrency market in 2024.
DBS Digital Exchange (DDEx) reported a near tripling in the value of digital assets traded in Singapore dollar terms in the first five months of the year, with a 36% increase in active trading clients and a 50% surge in cryptocurrency market capitalization.
What’s Next: These developments will likely be discussed further at Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders will explore how innovations like DBS’ new offerings are helping institutional clients tap into the growing digital asset space.
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