Singapore’s DBS Bank has announced the launch of over-the-counter (OTC) crypto options trading and structured notes, which is the first of its kind for any Asian-headquartered bank. Launching in the fourth quarter of 2024, this new set of features aims to be directed towards institutional investors and accredited wealth clients while also boosting their capacity to interface with digital assets.
This news is announced against the backdrop of the recently thriving cryptocurrency market. It is stated that during the first five months of 2024, the sector’s market capitalization increased by as much as 50%.
This positive trajectory is reflected in DDEx’s notable gains, which saw the value of traded digital assets nearly triple in Singapore dollar terms in comparison to the previous year. Moreover, the platform experienced a 36% growth in active trading clients and an 80% hike in crypto under custody.
According to the press release, this move is a strategic expansion of DBS’s digital asset services providing more existing services available on the DBS Digital Exchange (DDEx) where clients currently trade cryptocurrencies and security tokens.
Along with the introduction of options trading and structured notes, new alternative avenues for clients to diversify their portfolio linked with the performance of Bitcoin and Ethereum will be available, which are the top two cryptocurrencies by market capitalization.
The structured products will have different options, allowing clients to earn yields on fiat or get the underlying cryptocurrencies depending on the product structure and market conditions.
Crypto Market Surge Influences DBS’s Product Launch
Jacky Tai, Group Head of Trading and Structuring for Global Financial Markets at DBS, pointed out the professional investors to the growing trend of developing industries involving capital distribution for digital projects.
He stated:
These financial products are an expansion of the bank’s value proposition to provide clients trusted institutional-grade access to the digital asset ecosystem. 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.
However, as it continues to redefine its offerings, it is a fact that it has become the front-runner among the banks that blend conventional banking with the cutting-edge technology of digital assets, enabling it to be a sanctuary of safe and sound financial transactions for clients in this fast-paced field
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