One of the largest banks in all of Southeast Asia is offering its high-profile clients exposure to Bitcoin through options and debt instruments.
One of Singapore’s largest banks is the latest traditional financial institution to lean into cryptocurrencies.
DBS Bank, the largest bank in Singapore and one of the largest in Southeast Asia, is preparing to start offering over-the-counter cryptocurrency options and structured notes trading to its institutional clients.
In a statement released Tuesday, the bank with around USD $360 billion in assets under management announced the launch of OTC options and structured notes linked to Bitcoin and Ethereum, among other cryptocurrencies.
The new offering will provide clients seeking exposure to the new asset class the opportunity to trade options and structured notes, the bank noted. It will be available to eligible institutional investors and accredited wealth clients from the fourth quarter of 2024.
“Depending on the product structure and price movements of cryptocurrencies, clients can either earn a return in fiat or receive the underlying cryptocurrency,” the bank added.
Singapore’s Largest Bank Adds Bitcoin Offering
Options are contracts that offer traders the opportunity to trade in relation to the future value of a market, giving them the right, but not the obligation, to trade in that market at a specific price on or before a set date.
Meanwhile, a structured note is a type of debt security issued by financial institutions such as banks, with yields linked to the performance of underlying assets. OTC or over-the-counter trading is defined as a market in which investors can transact directly with each other through a network of intermediaries, without the need for an exchange.
“Eligible clients who custody Bitcoin and Ethereum with DBS can also hedge their positions against market volatility and potentially earn returns through various option structures,” the bank said in the statement.
“DBS, which is no stranger to the cryptocurrency sphere, has suggested that the new offering responds to growing investor interest in the asset class.” highlighted Jacky Tai, Group Head of Global Financial Markets Trading and Structuring at DBS.
“These financial products are an extension of the bank’s value proposition to provide clients with reliable institutional-grade access to the digital asset ecosystem. Now, our clients have an alternative channel to build exposure to the asset class and incorporate advanced investment strategies to better manage their digital asset portfolios,” he added.
This news comes in the wake of more financial giants introducing services and products based on Bitcoin and other cryptocurrencies, following the successful launch of spot Bitcoin exchange-traded funds (ETFs) in the U.S. earlier this year. A few days ago, Spanish bank BBVA announced the integration of the stablecoin USDC into its cryptocurrency services in Switzerland.
DBS aims to be the first Asia-based bank to offer financial products whose value is linked to the price of Bitcoin and Ethereum. The offering will be made available to clients of DBS Private Bank and DBS Treasures Private Client.
