Banking Giant DBS to Launch Crypto Options and Structured Notes for Institutional Clients

DBS Bank, headquartered in Singapore, is set to introduce over-the-counter cryptocurrency options trading and structured notes for institutional investors and accredited wealth clients. This initiative, scheduled for Q4 2024, marks DBS as the first Asian bank to offer such financial products linked to the value of Bitcoin and Ethereum.

DBS Expands Digital Asset Offerings

In a recent announcement, DBS Bank highlighted its strategic move to cater to the growing interest in digital assets among professional investors. Jacky Tai, DBS Group Head of Trading and Structuring, emphasized that clients are increasingly incorporating digital assets into their portfolios. He stated,

“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.”

New Investment Opportunities

Currently, DBS clients can trade cryptocurrency and security tokens through DBS Digital Exchange. The new venture will allow clients to gain exposure to crypto via options trading and structured notes. This could enable clients to potentially yield on fiat or take delivery of the underlying cryptocurrency. For example, a client looking to manage Bitcoin’s volatility might purchase a put option, granting the right to sell Bitcoin at a fixed price on a future date, even if the market price falls below that level.

Exclusive Access for Institutional Investors

Despite expanding its digital asset services, DBS will restrict crypto options and structured notes to eligible institutional investors and accredited clients of DBS Private Bank and DBS Treasures Private Client.

Blockchain Initiatives

In late August, DBS launched a blockchain-based solution utilizing smart contracts to streamline government grant disbursements. This pilot project demonstrated how programmable grants could enhance transparency and efficiency in the grant distribution process.

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