Singapore’s largest bank, DBS, is set to launch over-the-counter (OTC) options trading and structured notes linked to Bitcoin and Ethereum prices, making it the first Asian-headquartered bank to offer such products.
The new offerings will cater exclusively to eligible institutional investors and accredited wealth clients, further solidifying DBS’s position as a leader in the digital asset space.
DBS to roll out new Crypto products in Q4 2024
DBS has confirmed that the new financial products will be available in the fourth quarter of 2024. According to the bank, these offerings will allow eligible clients to gain cryptocurrency exposure through options trading and structured notes. Jacky Tai, Group Head of Trading and Structuring at DBS, noted that professional investors increasingly incorporate cryptocurrencies into their portfolios. The launch of these products is a response to this growing demand, offering clients a way to earn yields on fiat currencies based on market movements.
One key feature of the new offerings is the ability for clients who custodian Bitcoin and Ethereum with DBS to hedge against market volatility. Through various options structures, these clients can manage risks associated with price fluctuations in the crypto market. This move aligns with DBS’s strategy to provide comprehensive financial solutions that meet the evolving needs of its institutional clients.
Significant growth in DBS digital exchange
The announcement follows significant growth reported by DBS Digital Exchange (DDEx). In the first five months of 2024, the value of cryptocurrencies traded on the exchange tripled. Additionally, the platform saw a 36% increase in active trading clients and an over 80% surge in crypto assets custodied with DBS. DDEx, launched in December 2020, operates as a crypto exchange for corporate investors, financial institutions, and market makers, with an option for individual participation through DBS Private Bank.
As Singapore continues its efforts to position itself as a global crypto hub, DBS’s latest move underscores the country’s proactive approach to digital asset regulation. The Monetary Authority of Singapore (MAS) remains at the forefront of these efforts, ensuring robust anti-money laundering measures and transaction monitoring protocols are in place to protect investors and maintain market integrity.
DBS’s foray into crypto options trading and structured notes is a significant step in the bank’s digital asset strategy. It offers innovative solutions to institutional clients while enhancing its position in the rapidly evolving cryptocurrency market.