coinspress.com
DBS Bank, Singapore's largest financial institution, is preparing to introduce over-the-counter (OTC) options trading and structured notes tied to Bitcoin and Ethereum prices.
This initiative will make DBS the first bank headquartered in Asia to offer such products.
The new offerings are set to launch in the fourth quarter of 2024 and will be available exclusively to eligible institutional investors and accredited wealth clients. According to DBS, these products will provide opportunities for clients to gain exposure to cryptocurrencies and manage their positions through various hedging strategies.
Jacky Tai, DBS’s Group Head of Trading and Structuring, highlighted the growing interest among professional investors in adding crypto assets to their portfolios. The structured products will allow clients to potentially earn returns on fiat currency based on cryptocurrency market trends.
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Additionally, DBS Digital Exchange (DDEx) reported a significant increase in crypto trading activity, with a threefold growth in traded value and a 36% rise in active clients in the first five months of 2024. Crypto assets held with DBS have also surged by over 80%.
Launched in December 2020, DDEx operates as a crypto division of DBS Bank and caters to corporate clients, financial institutions, and market makers. Individual investors can access DDEx services through DBS Private Bank.
This development aligns with Singapore’s efforts to position itself as a leading crypto hub, supported by proactive regulation and robust anti-money laundering measures overseen by the Monetary Authority of Singapore (MAS).