Singapore’s DBS Bank has revealed plans to launch over-the-counter cryptocurrency options trading and structured notes for qualified institutional investors and accredited wealth clients beginning in Q4 2024.
Currently, the bank enables clients to trade cryptocurrencies and security tokens through its platform, DBS Digital Exchange. With the new initiative, clients will have the opportunity to gain exposure to cryptocurrencies via options trading and structured notes and earn yield on fiat or receive the underlying cryptocurrency, according to the bank’s press release published today, September 17.
Jacky Tai, DBS Group Head of Trading and Structuring, noted that this move is in response to the growing trend of professional investors increasingly allocating digital assets into their portfolios.
The bank emphasized that the value of digital assets traded on its exchange almost tripled in Singapore dollar terms compared to the same time in 2023. It also stated the number of active trading clients grew by 36%, while the digital assets kept in its custody surged by over 80% in Singapore dollar terms during the same period.
“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,” Tai stated.
The bank’s new crypto options and structured notes will be accessible only to eligible institutional investors and accredited clients of DBS Private Bank and DBS Treasures Private Client, according to the press release.
Notably, the bank claims it will become the first financial institution in Asia to offer products linked to Bitcoin and Ethereum.
DBS’s latest move signifies its ongoing and increased involvement in the blockchain industry. The bank recently introduced a blockchain-based solution that uses smart contracts to streamline and accelerate government grant distribution. It successfully carried out a pilot project of the protocol in collaboration with Enterprise Singapore and the Singapore Fintech Association. During this pilot, 27 local fintech firms received grants through the permissioned blockchain developed by DBS.
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