DBS Bank has announced the launch of over-the-counter (OTC) cryptocurrency options trading and structured notes aimed at institutional investors and wealth clients.
This initiative positions DBS as the first Asian-headquartered bank to offer financial products linked to the prices of Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization.
“Currently, clients build their digital asset portfolios with DBS by trading cryptocurrencies and security tokens via DBS Digital Exchange (DDEx),” DBS explained. “From Q4 2024 onwards, eligible clients seeking to build exposure to the asset class may do so through options trading and structured notes.”
The bank explained that certain financial products allow clients to earn returns on fiat money or receive cryptocurrencies, depending on the setup of the products and market conditions.
Additionally, clients holding Bitcoin and Ethereum with DBS can protect their investments from market fluctuations by using options, such as buying a contract to sell Bitcoin at a set price in the future.
Jacky Tai, Group Head of Trading at DBS, noted that more professional investors are adding digital assets to their portfolios.
He highlighted that these new products provide secure access to digital assets, coinciding with a 50% growth in the cryptocurrency market in the first five months of 2024.
DBS Bank, headquartered in Singapore, is a leading financial services group in Asia, recognized for its extensive range of banking and financial solutions.
As one of the largest banks in Southeast Asia by assets, DBS offers services that include consumer banking, corporate banking, investment banking, wealth management, and insurance.
DBS Bank has been actively involved in several cryptocurrency projects as part of its strategy to integrate digital assets into its banking services.
One of the key initiatives is the DBS Digital Exchange (DDEx), which offers trading services for various digital assets, including security tokens and cryptocurrencies.
This platform is designed for accredited investors, financial institutions, and family offices, providing a secure environment for tokenization, trading, and custody of digital assets.
More big investors are getting interested in cryptocurrencies and digital assets. In 2023, about 39% of them had some money in crypto, up from 31% in 2021.
EY, in 2023, also noted that 45% of big institutions with over $500 billion already have more than 1% in digital assets.
