According to a report by the Singaporean media "The Straits Times", DBS Bank announced today that it will launch financial products linked to the prices of Bitcoin (BTC) and Ethereum (ETH). From the fourth quarter of 2024, institutional customers Investing in these cryptoassets can be done through options trading and structured notes. DBS said it would be the first bank in Asia to launch such financial products.
The value of crypto options contracts is derived from the price of the underlying cryptocurrency, and investors can use these contracts to "hedge" against asset price fluctuations. Structured notes are investment instruments issued in the form of notes, a type of innovative financial product that is a combination of "fixed income products" and "derivative financial products".
Customers who have Bitcoin and Ethereum custody with DBS can hedge their positions through different options structures to deal with market volatility, DBS said. Clients who wish to manage the volatility of crypto assets can purchase put options, which allow them to sell Bitcoin at a fixed price even if the price of Bitcoin falls below a fixed price at a future date.
Jacky Tai, head of group trading and structuring at DBS Bank, noted that professional investors are gradually increasing digital asset allocations in their portfolios. The move provides professional investors with another avenue to enter the digital asset market and allows them to adopt more advanced investment strategies to manage their digital asset portfolios.
Jacky Tai added:
“This is consistent with DBS’s value proposition, which aims to provide qualified customers with trusted access to the institutional-grade digital asset ecosystem.”
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