- DBS Bank to launch OTC crypto options buying and selling linked to BTC and ETH in Q4 2024.
- Clients can hedge in opposition to volatility via options and structured notes.
- DBS continues integrating blockchain and Web3 for institutional-grade entry.
Singapore’s DBS Bank is ready to launch over-the-counter (OTC) crypto options buying and selling and structured notes in the fourth quarter of 2024.
This initiative goals to cater to the wants of institutional shoppers in search of methods to handle the volatility related to main digital belongings like Bitcoin (BTC) and Ethereum (ETH), the 2 largest cryptocurrencies by market capitalization.
DBS’s crypto options and structured notes
According to DBS, shoppers who want to achieve publicity to cryptocurrencies can now achieve this via options buying and selling and structured notes.
A crypto options contract derives its worth from the value of underlying digital currencies. It allows merchants to lock in the best, however not the duty, to purchase or promote an asset at a predetermined value at a future date.
By buying put options, for instance, shoppers can safe the flexibility to promote Bitcoin at a hard and fast value, no matter market situations on the time of execution, thus offering a layer of safety in opposition to value drops. This flexibility is especially helpful for buyers looking for to handle the volatility of their crypto portfolios.
In addition to options, DBS will supply structured notes, that are debt securities whose returns are tied to the efficiency of underlying belongings.
Structured notes present buyers with extra custom-made alternatives, permitting them to capitalize on market actions whereas probably lowering threat via tailor-made monetary merchandise.
DBS increasing its digital asset providers
Announced on September 17, 2024, DBS’s new choices will give institutional buyers entry to superior monetary merchandise linked to BTC and ETH.
These merchandise, which embody crypto options contracts and structured notes, are designed to enable buyers to hedge in opposition to the market fluctuations which have traditionally characterised the cryptocurrency area.
With this transfer, DBS is increasing its digital asset providers to embody extra subtle methods, aligning itself with the rising demand for institutional-grade entry to digital belongings.
According to Jacky Tai, DBS’s group head of buying and selling and structuring, institutional shoppers are more and more allocating funds to digital belongings, and this growth offers them with a brand new channel for incorporating superior methods into their portfolios.
DBS’s dedication to providing “trusted institutional-grade access” to digital belongings is in line with its broader mission of integrating blockchain expertise and Web3 infrastructure into its monetary providers.
As Singapore continues to lead in the worldwide adoption of digital belongings, DBS Bank stays on the forefront, leveraging regulatory assist and technological innovation to present cutting-edge options for its shoppers.
