Singapore’s largest bank, DBS, has announced the launch of over-the-counter (OTC) cryptocurrency options trading and structured notes for institutional investors and accredited wealth clients. These products, linked to the prices of Bitcoin and Ethereum, will be available starting in Q4 2024.
This makes DBS the first Asian-headquartered bank to offer such advanced crypto products. These tools will allow institutional clients to hedge against the volatility of cryptocurrencies and potentially earn a yield. For example, clients can use a put option to protect their Bitcoin holdings by locking in a price to sell at a future date, even if the market price drops below that level.
DBS has been expanding its crypto services, and this launch aligns with the growing interest from professional investors in adding digital assets to their portfolios. The move comes as the crypto market has seen a significant uptick, with the value of assets traded on the DBS Digital Exchange (DDEx) tripling in 2024 compared to the previous year.
Source: DBS Bank
