DBS to launch Bitcoin and Ethereum options trading for institutional clients

Key points

DBS Bank will begin offering crypto options and structured notes linked to btc and eth in Q4 2024.
The bank's new crypto products aim to provide hedges against market volatility.

DBS, Singapore's largest bank, has confirmed through an announcement that it will begin offering over-the-counter (OTC) options trading and structured notes linked to bitcoin and ethereum for institutional and accredited wealth clients beginning in Q4 2024.

This move makes DBS the first Asia-based bank to offer financial products whose value is linked to the prices of major cryptocurrencies. Eligible clients will be able to access tailored exposure to bitcoin and other cryptocurrencies through OTC options and structured notes, expanding beyond the current cryptocurrency and security token trading offerings on the DBS Digital Exchange (DDEx).

Jacky Tai, head of DBS’s trading and structuring group, explained the rationale behind the new offerings, saying that there is a trend where professional investors are inclined to allocate a portion of digital assets to their respective portfolios.

Based on this, Tai believes that DBS’s strong credit ratings and “long-standing experience in structuring solutions” would boost these financial products and expand the bank’s value proposition.

The launch comes amid significant growth in the cryptocurrency market, with DBS reporting a nearly 50% increase in total cryptocurrency market capitalization during the first five months of 2024. During this period, the value of digital assets traded on DDEx (the bank's digital exchange) almost tripled compared to the same period in 2023, while the number of active commercial customers grew by 36%.

DBS’ expansion into crypto-linked financial products follows a trend of major financial institutions embracing bitcoin and cryptocurrency offerings. The move is expected to further legitimize bitcoin as an asset class for institutional investors in Asia and potentially accelerate mainstream adoption in the region. Earlier in August, DBS unveiled a treasury token pilot project in collaboration with Ant International with the aim of building an EVM-compatible permissioned chain.