DBS will expand its shelf of crypto-related products for institutional investors and wealth management clients.
DBS will launch over-the-counter cryptocurrency options trading and structured notes, according to a statement. From the fourth quarter of 2024 onwards, eligible institutional investors and accredited wealth clients at DBS Private Bank and DBS Treasures Private Client will gain access to the new offering.
«Depending on the product’s structure and cryptocurrency price movements, clients may earn yield on fiat or take delivery of the underlying cryptocurrency,» the bank said. «Eligible clients custodizing Bitcoin and Ethereum with DBS may also hedge their positions against market volatility and potentially earn yield through various options structures.»
DDEx Growth
The Singapore lender first entered the crypto trading business with the launch of DBS Digital Exchange (DDEx) in late 2020. The exchange has seen growth with the value of of digital assets traded nearly tripling in Singapore dollar terms year-on-year in the first five months of 2024. The number of active trading clients and digital assets custodized in Singapore dollar terms also grew 36 percent and 80 percent, respectively, during this period.
«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.»
