DBS Expands Crypto Offerings With Options, Structured Notes

Singapore's DBS will launch over-the-counter cryptocurrency options trading and structured notes for eligible institutional investors and accredited wealth clients, the bank announced on Tuesday.

This marks a major step for DBS, as it becomes the first Asian-headquartered bank to offer financial products linked to Bitcoin and Ethereum prices. The move aims to broaden access to the crypto asset class while providing clients with tools to hedge against volatility and potentially earn yield, the announcement said.

Starting in Q4 2024, eligible clients will be able to build exposure to cryptocurrencies through options trading and structured notes. Depending on the product's structure and price movements, clients may earn yield on fiat currency or take delivery of the underlying cryptocurrency.

For clients already holding Bitcoin or Ethereum with DBS, options trading can be used to hedge against market volatility and potentially earn yield. For instance, a put option can be used to protect against a potential price decline.

Jacky Tai, group head of trading and structuring at DBS, emphasized the growing demand for digital assets among professional investors: "These financial products are an expansion of our value proposition to provide clients trusted institutional-grade access to the digital asset ecosystem."

The launch of these new products comes at a time of significant growth in the cryptocurrency market, particularly among institutional investors. In July, DBS said that the value of digital assets traded on its DDEx exchange nearly tripled in Singapore dollar terms as compared to the same time in 2023. In addition, the number of active trading clients on DDEx grew 36%, while digital assets custodized with DBS surged over 80% in Singapore-dollar terms.