In Q4 of this year DBS bank plans to offer over the counter (OTC) cryptocurrency option trading and structured notes. This will only be available to certain institutions and high net worth clients.
Based on the descriptions, it will support options settled in cash and others through delivery of the underlying cryptocurrency, with only Bitcoin and Ethereum supported.
Currently clients can already trade spot crypto using the DBS Digital Exchange (DDEx). The bank was one of the first in the world to offer spot cryptocurrency trading services when it launched DDEx in 2020. Now clients where DBS provides crypto custody will be able to hedge their exposures using options.
“Professional investors are increasingly allocating to digital assets in their portfolios,” said Jacky Tai, Group Head of Trading and Structuring, Global Financial Markets, DBS. “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.”
The bank previously announced soaring volumes and client numbers in the first five months of the year. Assets under custody rose 80% and active clients are up 36%. It didn’t provide a further update today, but crypto markets have drifted down since May.
AsiaNext is another Singapore-based venue providing crypto derivatives for institutions. It was founded by Switzerland’s SIX and SBI Digital Asset Holdings.
