DBS is set to launch Bitcoin and Ethereum options trading for institutional clients.
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DBS Bank will begin offering crypto options and structured notes linked to BTC and ETH in Q4 2024. The aim of the bank's new crypto products is to provide a hedge against market volatility.
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Singapore's largest bank DBS has confirmed in an announcement that it will start offering over-the-counter (OTC) put options and syndicated notes linked to Bitcoin and Ethereum to institutional and accredited wealth clients from Q4 2024.
The move makes DBS the first Asia-headquartered company to offer financial products whose prices are linked to the prices of major cryptocurrencies. Eligible clients can gain customized Bitcoin and crypto exposure through OTC options and syndicated notes, expanding beyond the existing crypto trading and security token offerings on DBS Digital Exchange (DDEx).
Jackie Tai, Group Head of Marketing and Structures at DBS, explained the rationale behind the new offerings is that professional investors tend to neglect to allocate a certain amount of digital assets to their portfolios.
From this, Tai believes DBS' strong credit ratings and “long-term expertise in structuring solutions” will enhance these financial products and expand the bank's value proposition.
In the first five months of 2024, the total crypto market capitalization has increased by almost 50%, DBS reports, and is experiencing significant growth in the crypto market. During this period, the value of digital assets will be traded in DDX (the bank's digital currency). In the year By 2023, the number of active business customers will increase by 36% compared to the same period.
DBS' expansion into crypto-related financial products follows a trend where major financial institutions have embraced Bitcoin and cryptocurrency offerings. The move legitimizes bitcoin as an asset class for institutional investors in Asia and is expected to accelerate mainstream adoption in the region. In early August, DBS announced a Treasury Token pilot project in partnership with Ant International with the aim of building an AMM-compatible permission chain.
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