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DBS Bank to Roll Out Asia’s First Institutional-Grade Crypto Options
Singapore’s DBS Bank is poised to make history as the first financial organization in Asia to offer institutional-grade cryptocurrency options trading and structured notes. The move is part of the company’s strategy to deepen its presence in the digital asset space for its high-net-worth and institutional clients.
In an announcement on Tuesday, DBS confirmed that these new financial products will be available by the fourth quarter of 2024. The new offerings will be accessible to eligible institutional investors and accredited wealth clients, providing direct exposure to the price movements of Bitcoin BTC $59 328 24h volatility: 1.4% Market cap: $1.17 T Vol. 24h: $29.09 B and Ethereum ETH $2 315 24h volatility: 0.7% Market cap: $278.60 B Vol. 24h: $12.99 B .
DBS Bank Expands Crypto Services
The bank announced that the initiative is aimed at meeting the growing demand from institutional and wealthy clients who are increasingly looking to diversify their portfolios with digital assets.
These advanced financial instruments, including crypto options trading and structured notes, will be offered through DBS Private Bank and DBS Treasures Private Client, catering exclusively to qualified investors.
Through these advanced financial products, the company is expanding its digital asset ecosystem to offer its clients new tools to fully explore the emerging crypto economy. Investors will now have more options to manage their digital asset portfolios, whether they are looking to hedge against market fluctuations or generate yield.
Managing Risk with Institutional-Grade Tools
The product will be available to eligible institutional and professional customers in Asia through the company’s digital asset trading platform known as DBS Digital Exchange (DDEx).
The exchange, launched in 2020 already offers the banks clients access to various digital products including securities token and cryptocurrencies. However, the addition of options trading and structured notes will provide more advanced investment tools to customers.
“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, said Jacky Tai, a senior executive at DBS.
DBS emphasized that these products are specifically designed to help clients manage the volatility of the crypto market. Clients can hedge their investments or, depending on the product’s structure, purchase the underlying cryptocurrencies themselves.
For example, a client holding bitcoin with DBS could purchase a put option, allowing them to sell their BTC at a predetermined price on a future date. Even if bitcoin’s market price drops below the agreed level, the client can still safeguard their investment and potentially realize gains.
Capitalizing on Crypto Boom
Tai said the launch of the new financial offerings comes at a time when institutional investors are already showing strong interest in crypto.
He believes the company’s strong reputation since its launch in July 1968 and expertise in structured financial solutions positions the bank as a reliable partner for clients looking to build sophisticated investment strategies around digital assets.
Meanwhile, the timing of these product launches aligns with a significant surge in the global crypto market. In the first five months of 2024 alone, the total market capitalization of digital assets grew by nearly 50%.
DBS’s own exchange, DDEx, witnessed remarkable growth during this period, with the value of traded digital assets tripling and the number of active clients increasing by 36%. Additionally, DBS saw a more than 80% rise in digital assets under custody, measured in Singapore-dollar terms.
DBS Bank to Roll Out Asia’s First Institutional-Grade Crypto Options
