Categories: Global Adoption

Singapore’s DBS Bank to Offer Bitcoin & Ethereum Options Trading

DBS Bank of Singapore plans to launch over-the-counter (OTC) crypto options trading and structured notes for institutional clients in Q4 2024, according to a Sept. 17 statement.

This move positions DBS as the first Asian-headquartered bank to offer financial products tied to the value of Bitcoin and Ethereum, the two largest digital assets by market capitalization. According to the bank, the crypto options and structured notes products will only be available to eligible institutional investors and accredited clients of DBS Private Bank and DBS Treasures Private Client.
The bank revealed that its new products build on its existing crypto services through DBS Digital Exchange (DDEx). The new products give clients more ways to engage with digital assets as investors can now potentially earn a yield on fiat cy or take delivery of underlying crypto. Also, Bitcoin and Ethereum holders at DBS gain additional benefits. They can now hedge against market swings and possibly generate returns through various options strategies.
Jacky Tai, head of trading and structuring at DBS Group, highlighted the rising demand for digital assets among professional investors. He explained how these new products broaden the bank’s digital asset services.

He said: “These financial products are an expansion of the bank’s value proposition to provide clients trusted institutional-grade access to the digital asset ecosystem. Now, our clients have an alternative channel to build exposure to the asset class and incorporate advanced investment strategies to better manage their digital asset portfolios.”

For example, a client worried about Bitcoin’s price swings could buy a put option. This allows them to sell Bitcoin at a set price in the future, even if the market price falls below that level. DBS also reported significant growth in crypto trading volumes on its digital exchange.

In the first five months of 2024, trading volume for digital payment tokens on DDEx tripled compared to the same period in 2023. The number of active trading clients grew by 36%, while digital assets under custody increased by 80%. The bank credited this growth to a net inflow of deposits from clients seeking safe, bank-grade platforms for custody and trading of digital assets.

Terron Gold

Recent Posts

Senator Murphy Alleges White House Insiders Profited From Iran Strike Bets, Pushes to Ban Prediction Markets on Government Actions

U.S. Senator Chris Murphy (D-Conn.) is calling for legislation to ban prediction markets that allow traders to bet…

2 days ago

IRS Proposes Electronic-Only Delivery For Crypto Tax Forms Under New Reporting Rules

The U.S. Internal Revenue Service (IRS) has proposed a new rule that would allow cryptocy brokers to deliver…

2 days ago

Crypto-Friendly Fintech Revolut Files For U.S. Banking License to Expand Crypto and Payments Services

Global fintech powerhouse Revolut has filed an application for a U.S. banking license, a move that would allow…

2 days ago

Suspect Arrested on Caribbean Island of Saint Martin in $46M Seized Crypto Theft Case

A man accused of stealing tens of millions of dollars in cryptocy from U.S. government…

2 days ago

NYSE Parent ICE Invests in Crypto Exchange OKX at $25B Valuation Amid Tokenized Stocks Push

Intercontinental Exchange (ICE) — the parent company of the New York Stock Exchange — has taken a strategic…

2 days ago

AI Models Favor Bitcoin as a Store of Value, Stablecoins for Payments, BPI Study Finds

A new study from the Bitcoin Policy Institute (BPI) found that leading artificial intelligence models overwhelmingly favor Bitcoin…

2 days ago