DBS Bank to Launch OTC Crypto Options Trading Linked to BTC and ETH in Q4 2024
Singapore’s DBS Bank is set to introduce over-the-counter (OTC) crypto options trading and structured notes in the final quarter of 2024, targeting institutional clients who want to manage the volatility of major digital assets like Bitcoin (BTC) and Ethereum (ETH), the largest cryptocurrencies by market value.
Crypto Options and Structured Notes from DBS
DBS clients looking to gain exposure to cryptocurrencies can do so through these new offerings. Crypto options contracts derive their value from underlying digital currencies and grant the right, but not the obligation, to buy or sell an asset at a set price on a future date. For example, purchasing a put option allows investors to sell Bitcoin at a predetermined price, offering protection against potential market declines.
In addition to options, DBS will also provide structured notes, debt securities whose returns depend on the performance of specific assets. These notes offer customized opportunities for investors to capitalize on market movements while mitigating risk through tailored financial solutions.
DBS Expands Digital Asset Services
Announced on September 17, 2024, DBS’s latest offerings will provide institutional clients with access to advanced financial products linked to BTC and ETH, allowing them to hedge against market volatility. The move is part of DBS’s broader strategy to meet the rising demand for institutional-grade access to digital assets.
Jacky Tai, DBS’s group head of trading and structuring, noted that institutional clients are allocating more funds to digital assets, and these new offerings give them sophisticated tools to manage their portfolios. DBS continues to align its services with its commitment to integrating blockchain and Web3 technologies into its financial services.
As Singapore solidifies its position as a leader in digital asset adoption, DBS Bank is staying ahead of the curve, offering innovative, secure solutions to its clients.
