Singapore’s DBS Bank is making waves in the financial world with a groundbreaking move into cryptocurrency.
On September 17, Singapore’s DBS Bank made a groundbreaking announcement: it will soon offer over-the-counter (OTC) crypto options trading and structured notes for institutional clients.
Starting in the fourth quarter of 2024, DBS will allow investors to tap into financial products linked to the biggest names in digital assets: Bitcoin (BTC), which is currently valued at $60,307, and Ether (ETH), priced at $2,347.
These new offerings will include crypto options contracts, which let investors hedge against the wild swings of cryptocurrency prices by locking in a price for future transactions.
Additionally, DBS will provide structured notes—debt securities whose returns are tied to the performance of these digital assets.
For clients who store their BTC and ETH with DBS, there will be various options strategies available to help manage market volatility. For instance, a put option will allow them to sell Bitcoin at a predetermined price on a future date, even if the market value drops.
Jacky Tai, DBS’s head of trading and structuring, noted that professional investors are increasingly allocating more resources to digital assets. This new suite of products aims to expand DBS’s digital asset offerings and provide sophisticated strategies for managing these investments. Tai emphasized that this initiative aligns with DBS’s goal of delivering trusted, institutional-grade access to the digital asset world.
As per the latest crypto news, in line with its embrace of Web3, DBS Bank has recently introduced DBS Treasury Tokens on a permissioned, EVM-compatible blockchain, aiming to enhance corporate liquidity management.
The bank has also leveraged blockchain technology to streamline government grant distribution, demonstrating its potential to boost efficiency and governance.
Also Read: Singapore’s DBS Pioneers Blockchain Grant Disbursement
Singapore’s proactive stance on crypto innovation has earned it the top spot in a recent study by Henley & Partners, surpassing other major players like Hong Kong, the UAE, and the US. The country’s high scores in economic factors, regulatory developments, and technology highlight its robust support for digital asset adoption and investment.
