Singapore-based DBS Bank plans to launch over-the-counter (OTC) crypto options trading and structured bonds for institutional clients in Q4 2024, according to an announcement on September 17.
This move marks DBS as the first bank in Asia to offer financial products linked to the value of Bitcoin and Ethereum, the two largest digital assets by market Capital .
According to the bank, crypto options and structured bonds will be available only to eligible institutional investors and certified clients of DBS Private Bank and DBS Treasures Private Client.
New crypto products
The bank announced that these new products are built on the existing crypto services platform through DBS Digital Exchange (DDEx).
These new products offer customers more ways to interact with digital assets, allowing investors the ability to generate returns from fiat currency or receive deliveries of the underlying crypto.
Furthermore, Bitcoin and Ethereum holder at DBS will receive additional benefits. They can hedge against market fluctuations and potentially generate profits through diverse options strategies.
Jacky Tai, head of trading and structuring at DBS Group, highlighted the growing demand for digital assets from professional investors. He explained that these new products expand the bank's digital asset services.
He said:
“These financial products are an extension of the bank’s value proposition, providing clients with access to a highly reliable digital asset ecosystem. Now, our clients have an alternative channel to build a presence in this asset class and apply advanced investment strategies to better manage their digital asset portfolios.”
For example, a customer concerned about Bitcoin price volatility might buy a put option. This allows them to sell Bitcoin at a fixed price in the future, even if the market price falls below that level.
DBS also reported a significant increase in crypto volume on its digital trading platform.
In the first five months of 2024, volume for digital payment Token on DDEx tripled compared to the same period in 2023. The number of active trading clients increased by 36%, while digital assets held increased by 80%.
The bank attributed this growth to net Capital from customers seeking secure, bank-standard platforms for storing and trading digital assets.
