Singapore’s DBS Bank will launch crypto options and structured notes in Q4 2024
DBS Bank to launch BTC and ETH linked trading in Q4 2024. Clients can hedge volatility with options and syndicated notes. DBS continues to integrate blockchain and Web3 for institutional-level access.
Singapore's DBS Bank is set to begin trading over-the-counter (OTC) crypto options and structured notes in the fourth quarter of 2024.
This initiative aims to meet the needs of institutional clients looking for ways to manage the volatility associated with major digital assets such as Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization.
DBS crypto options and structured notes
According to DBS, clients seeking exposure to cryptocurrencies can now do so through options trading and structured notes.
A crypto options contract derives its value from the value of the underlying digital currencies. It allows traders to lock in the right to buy or sell the asset at a certain price in the future.
By buying options, for example, clients can ensure the ability to sell bitcoins at a fixed price regardless of market conditions at the time they are exercised, thus providing a hedge against falling prices. This flexibility is especially useful for investors who want to control the volatility of their crypto portfolios.
In addition to options, DBS offers structured notes, which are debt securities whose returns are tied to asset performance.
Structured notes offer more customized opportunities for investors, allowing them to capitalize on market movements and reduce risk through customized financial products.
DBS is expanding its digital asset services.
Announced on September 17, 2024, DBS' new offerings will allow institutional investors access to advanced financial products linked to BTC and ETH.
These products, which include crypto options contracts and structured notes, are designed to allow investors to hedge the cryptocurrency space against historically known market fluctuations.
With this move, DBS will expand its Digital Assets service to include more sophisticated mechanisms, aligning with the needs of institutional-level access to digital assets.
Jackie Tay, Head of Trading and Structures Group at DBS, said: “As institutional clients increasingly allocate funds to digital assets, this expansion creates a new channel for them to incorporate enhanced strategies into their portfolios.”
DBS' commitment to “trusted institutional-grade access” to digital assets is consistent with its broader mission of integrating blockchain technology and Web3 infrastructure into its financial services.
As Singapore continues to lead the global adoption of digital assets, DBS Bank remains at the forefront, leveraging regulatory support and technological innovation to deliver cutting-edge solutions for its clients.
