Singapore’s DBS to launch OTC crypto options for institutional investors

Banking giant DBS is set to launch crypto options and structured notes for institutional and accredited clients, becoming the first Asian bank to offer such products.

Singapore-based DBS Bank announced plans to introduce over-the-counter cryptocurrency options trading and structured notes for eligible institutional investors and accredited wealth clients starting in Q4 2024.

In a Sept. 17 press release, the bank said the move positions it as the first financial lender in Asia to offer financial products linked to the value of Bitcoin (BTC) and Ethereum (ETH). DBS group head of trading and structuring Jacky Tai says the move comes as professional investors are “increasingly allocating to digital assets in their portfolios.”

“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.”

Jacky Tai

So far, the bank allows clients to trade crypto and security tokens via its own crypto arm DBS Digital Exchange. With the new venture, clients could gain exposure to crypto through options trading and structured notes, potentially allowing for yield on “fiat or take delivery of the underlying cryptocurrency,” the press release reads.

“For instance, a client seeking to manage the inherent volatility of Bitcoin may buy a put option, which gives the client the right to sell Bitcoin at a fixed price at a future date, even if Bitcoin prices fall below the fixed price by that future date.”

DBS

Although the bank deepens its web3 roots, crypto options and structured notes will still be available only to eligible institutional investors and accredited clients of DBS Private Bank and DBS Treasures Private Client, per the press release.

In late August, DBS launched a blockchain-based solution utilizing smart contracts to streamline government grant disbursements. The bank indicated that the pilot aimed to demonstrate how these programmable grants could enhance transparency and efficiency in the grant distribution process.