DBS, Singapore's largest bank, is preparing to offer institutional investors new opportunities to engage with crypto.
The bank recently announced its plans to launch over-the-counter (OTC) crypto options trading and structured notes starting the fourth quarter of 2024.
DBS stated, "Eligible clients custodizing Bitcoin (BTC) and Ethereum (ETH) with DBS may also hedge their positions against market volatility and potentially earn yield through various options structures."
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Crypto options are contracts that allow buying or selling an asset at a specific price by a certain date. This provides investors with the opportunity to speculate on the future price direction of cryptocurrencies and potentially profit from both rising and falling markets.
Structured notes, on the other hand, are loans to a bank where an investor's return depends on the performance of assets. Investors get a payout based on how those assets perform over time, but the bank controls the structure of the deal.
Jacky Tai, Group Head of Trading and Structuring at DBS, emphasized that the bank's clients will now have more flexibility in managing their digital asset portfolios through alternative investment strategies. He further commented:
Professional investors are increasingly allocating to digital assets in their portfolios. Underpinned by DBS' strong credit ratings and longstanding expertise in structuring solutions, these financial products are an expansion of the bank’s value proposition to provide clients trusted institutional-grade access to the digital asset ecosystem.
With this development, DBS continues to solidify its position as a leader in the financial sector’s move towards embracing digital assets.
