DBS Bank Crypto Options To Be Launched In Q4

Key Points:

• DBS Bank crypto options trading will be offered to institutional investors to gain exposure to Bitcoin and Ether.
• The offerings include contracts to hedge against cryptocurrency volatility and structured debt securities tied to digital asset performance.

DBS Bank, Singapore’s largest bank, announced plans to launch over-the-counter crypto options trading along with structured notes for its institutional clients.

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DBS Bank Crypto Options Trading for Institutional Investors

The DBS Bank crypto options will further enable institutional investors to attain more sophisticated exposure to the digital asset market, particularly to Bitcoin and Ether, two of the largest cryptocurrencies by market capitalization.

The new offerings’ rollout is scheduled to begin in the bank during the fourth quarter of 2024. The DBS Bank crypto options products involve advanced financial instruments that could help someone navigate the ups and downs of the highly volatile cryptocurrency market, including crypto options trading and structured notes.

In the case of options trading in cryptocurrency, investors can commit to derivative contracts whose value is taken from the floating prices of virtual or cryptocurrencies, such as Bitcoin or Ether. Options trading allows traders to sell or buy the assets at a predetermined price on a future date. This mechanism may hedge the price fluctuation commonly associated with the class of digital currencies.

Structured notes, on the other hand, are forms of debt securities issued by financial institutions whose returns are linked to the performance of some underlying assets, in this case, cryptocurrencies. Such notes extend a new route for institutional investors to crypto market exposure with the possibility of risk management using the structured nature of products.

DBS Extends Digital Asset Strategy with Blockchain Solutions

The growth of crypto options trading at DBS Bank is part of the overall strategic plan to advance its digital asset services. It has also been researching ways blockchain technology, among other Web3 innovative technologies, could be leveraged to enhance financial services.

In August, DBS teamed up with digital payment provider Ant International to deploy a blockchain-based treasury and liquidity management solution. Called DBS Treasury Tokens, the solution runs on permissioned blockchain from DBS, designed for instant, multicurrency transactions in and out of its various entities.