New Crypto Products Announcement
DBS Bank of Singapore is set to introduce over-the-counter (OTC) crypto options trading and structured notes for institutional clients in Q4 2024. This announcement, made on September 17, positions DBS as the first Asian-headquartered bank to offer financial products linked to Bitcoin and Ethereum, the two leading digital assets.
Eligibility and Access
These new crypto options and structured notes will be available exclusively to eligible institutional investors and accredited clients of DBS Private Bank and DBS Treasures Private Client. This move expands DBS’s range of financial products in the cryptocurrency market.
Expansion of Digital Asset Services
The new offerings build on DBS’s existing services through the DBS Digital Exchange (DDEx). Consequently, clients will have more opportunities to engage with digital assets. They can earn yields on fiat currency or acquire the underlying cryptocurrencies.
Additionally, Bitcoin and Ethereum holders at DBS will benefit from these products. They can hedge against market swings and potentially earn returns through various options strategies.
Expert Insights
Jacky Tai, head of trading and structuring at DBS Group, emphasized the growing demand for digital assets among professional investors. He explained that these new products enhance the bank’s digital asset services.
Tai stated:
“These financial products are an extension of our value proposition. They provide clients with institutional-grade access to the digital asset ecosystem. Thus, clients have an alternative way to build exposure to this asset class and use advanced investment strategies to manage their portfolios.”
Client Benefits
For instance, a client worried about Bitcoin’s price fluctuations could buy a put option. This allows them to sell Bitcoin at a set price in the future, even if the market price falls below that level.
Growth in Crypto Trading Volumes
DBS has reported significant growth in crypto trading volumes on its digital exchange. In the first five months of 2024, trading volume for digital payment tokens on DDEx tripled compared to the same period in 2023. Furthermore, the number of active trading clients grew by 36%, and digital assets under custody increased by 80%.
The bank attributes this growth to a net influx of deposits from clients seeking secure, bank-grade platforms for digital asset custody and trading.
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