DBS unveils crypto options trading and structured notes for institutional clients

Singapore’s largest bank, DBS, has announced its plans to launch over-the-counter (OTC) options trading and structured notes linked to Bitcoin and Ethereum prices.

This move makes the Development Bank of Singapore (DBS) the first Asian-headquartered bank to offer such financial products. The new offering will be exclusive to eligible institutional investors and accredited wealth clients.

DBS set to launch the products in Q4 2024

As per the details from the press release, the new products will be launched in Q4 2024. “From Q4 2024 onwards, eligible clients seeking to build exposure to the asset class may do so through options trading and structured notes,” DBS stated.

Jacky Tai, Group Head of Trading and Structuring at DBS, mentioned that professional investors are increasingly allocating crypto to their portfolio.

The new products will allow eligible clients to potentially earn yields on fiat currency depending on market movements. Additionally, clients custodizing Bitcoin and Ethereum with DBS can hedge their positions against market volatility through various options structures.

DBS Digital Exchange (DDEx) reported major crypto market growth

DBS Digital Exchange (DDEx) has reported that the value of the crypto traded on their exchange has tripled in the first five months of 2024. They also reported a 36% growth in active trading clients and an over 80% surge in crypto custodized with DBS.

DDEx is like a crypto wing of DBS Bank, which was launched in December 2020. However, it is not open to the general public and is exclusive to corporate investors, financial investors and market makers. But there is an option for individuals to participate via DBS Private Bank.

The news comes amidst Singapore’s moves to establish itself as a crypto hub. The country has taken a proactive approach to regulating crypto. The Monetary Authority of Singapore (MAS) is the central bank and the main regulator that keeps a check on crypto regulations.

The country has also established robust AML measures with transaction monitoring and due diligence to ensure a safe space for crypto investors.