DBS to launch Bitcoin and Ethereum options trading for institutional clients

Mila September 17, 2024

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Key Takeaways

DBS Bank will start offering crypto options and structured notes linked to BTC and ETH in Q4 2024.
The bank’s new crypto products aim to provide hedging against market volatility.

DBS, Singapore’s largest bank, has confirmed through an announcement that it will begin offering over-the-counter (OTC) options trading and structured notes linked to Bitcoin and Ethereum for institutional and accredited wealth clients starting in Q4 2024.

The move makes DBS the first Asian-headquartered bank to offer financial products whose value is linked to the prices of major cryptocurrencies. Eligible clients will be able to access tailored Bitcoin and crypto exposure through OTC options and structured notes, expanding beyond the current cryptocurrency trading and security token offerings on the DBS Digital Exchange (DDEx).

Jacky Tai, Group Head of Trading and Structuring at DBS, explained the rationale behind the new offerings, saying that there is a trend where professional investors are leaning towards allocating a portion of digital assets for their respective portfolios.

Based on this, Tai believes that DBS’ strong credit ratings and “longstanding expertise in structuring solutions” would boost these financial products and expand the bank’s value proposition.

The launch comes amid significant growth in the crypto market, with DBS reporting a nearly 50% increase in total crypto market capitalization during the first five months of 2024. During this period, the value of digital assets traded on DDEx (the bank’s digital exchange) nearly tripled compared to the same time in 2023, while the number of active trading clients grew by 36%.

DBS’s expansion into crypto-linked financial products follows a trend of major financial institutions embracing Bitcoin and cryptocurrency offerings. The move is expected to further legitimize Bitcoin as an asset class for institutional investors in Asia and potentially accelerate mainstream adoption in the region. Earlier in August, DBS introduced a treasury tokens pilot project in collaboration with Ant International with the aim of building an EVM-compatible, permissioned chain.