DBS Set to Introduce Bitcoin and Ethereum Options Trading for Institutional Clients
DBS Bank, the largest bank in Singapore, is set to introduce over-the-counter (OTC) options trading and structured notes tied to Bitcoin and Ethereum for institutional and accredited wealth clients in the fourth quarter of 2024. This move positions DBS as the first Asian-based bank to offer financial instruments linked to major cryptocurrencies. Qualified clients will gain access to customized exposure to Bitcoin and other cryptocurrencies through OTC options and structured notes, expanding beyond the existing cryptocurrency trading and security token offerings available on the DBS Digital Exchange (DDEx).
Jacky Tai, the Group Head of Trading and Structuring at DBS, highlighted the reasoning behind these new products, noting a growing inclination among professional investors to include digital assets in their investment portfolios. Tai expressed confidence that DBS’s robust credit ratings and extensive experience in structuring solutions will enhance these financial products and enrich the bank’s overall value proposition.
The unveiling of these products comes amid a substantial surge in the cryptocurrency market, with DBS reporting a nearly 50% surge in total crypto market capitalization in the initial five months of 2024. During this period, the value of digital assets traded on DDEx nearly tripled compared to the same timeframe in 2023, while the number of active trading clients surged by 36%.
DBS’s expansion into crypto-linked financial products aligns with a broader trend of major financial institutions embracing Bitcoin and cryptocurrencies. This strategic move is anticipated to further establish Bitcoin as a legitimate asset class for institutional investors in Asia and potentially accelerate mainstream adoption across the region. In a previous initiative in August, DBS collaborated with Ant International on a treasury tokens pilot project aimed at constructing an EVM-compatible, permissioned chain.
