DBS Bank plans to introduce over-the-counter crypto options trading and structured notes to eligible institutional and high net worth clients.
According to DBSThe bank is the first in Asia to offer financial products linked to the value of Bitcoin and Ethereum, the two most well-known cryptocurrencies.
Currently, DBS customers can trade digital assets through cryptocurrencies and security tokens on the DBS Digital Exchange (DDEx).
Starting in the fourth quarter of 2024, eligible clients will have additional options to gain exposure to these assets through options transactions and structured notes.
These products may offer fiat yields or allow clients to receive the underlying cryptocurrency, depending on the product structure and market trends.
The introduction of these products coincides with a 50% increase in cryptocurrency market capitalization in the first five months of 2024.
DDEx also experienced significant growth during this period, with active trading clients increasing by 36% and digital assets held at DBS in Singapore dollars increasing by 80%. The value of assets traded on DDEx increased by roughly 3x.
DBS said it will adhere to industry best practices for safeguarding clients’ digital assets and will use institutional cold wallets separate from DDEx for storage.
The new service is available exclusively to eligible institutional and accredited clients of DBS Private Bank and DBS Treasures Private Client.
While DBS is expanding access to the cryptocurrency market, it is advising clients to carefully evaluate their investment objectives and risk tolerance before engaging in these products.
Jackie Tai, group head of trading and structuring at DBS Global Financial Markets, said:
“Professional investors Allocation to digital assets increases Backed by DBS’ strong credit ratings and years of expertise in building solutions, these financial products are an extension of the bank’s value proposition of offering customers trusted, institutional-grade access to the digital asset ecosystem.
Our clients now have an alternative channel to build exposure to the asset class and incorporate advanced investment strategies to better manage their digital asset portfolios.”
Featured Image Credit: Free Pick
