Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Singapore’s DBS Bank Launches OTC Crypto Options. Institutional Interest In Crypto Grows!

Singapore’s DBS Bank Launches OTC Crypto Options. Institutional Interest In Crypto Grows!

99bitcoins99bitcoins2024/09/17 17:42
By:Akriti SethSam Cooling

Singapore’s DBS Bank Launches OTC Crypto Options. Institutional Interest In Crypto Grows! image 0

Singapore’s DBS Bank announced the launch of crypto options and structured notes on 17 September 2024. The bank will offer over-the-counter crypto options trading for institutional investors and wealth clients. 

DBS will officially be the first Asian-headquartered bank to offer financial products whose value is linked to Bitcoin and Ethereum prices. 

“From Q4 2024 onwards, eligible clients seeking to build exposure to the asset class may do so through options trading and structured notes,”  stated DBS.

Does this development mark a pivotal moment in the integration of digital assets into mainstream financial products?

BREAKING!
Singapore's largest bank @dbsbank has launched over-the-counter cryptocurrency options trading and structured notes.Starting Q4 2024, qualifying institutional investors and accredited wealth clients will have access to the new product. https://t.co/WbzqpbBqrz

— 🐼PandaRippleXRP🐼 (@RipplePandaXRP) September 17, 2024

DBS Bank’s Broader Strategy To Expand Digital Asset Offerings

The launch of these products is particularly noteworthy, as it represents major traditional financial institutions venturing into crypto derivatives. 

Commenting on the launch of OTC crypto options trading, Jacky Tai, group head of trading and structuring at DBS, said, “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.”

“Professional investors are increasingly allocating to digital assets in their portfolios,” stated Tai.

Crypto options are financial derivatives that provide investors with the right to buy or sell a cryptocurrency. Structured notes, on the other hand, can be designed to provide exposure to specific digital assets while incorporating features that mitigate risk or enhance potential returns.

By integrating these products, DBS Bank is enabling investors to access sophisticated tools that were previously unavailable in the crypto space. It bridges the gap between traditional finance and digital assets.

DBS Bank’s launch of crypto options trading also highlights significant regulatory considerations. The bank operates under stringent regulatory frameworks, ensuring that its crypto offerings comply with existing financial regulations.

As digital assets continue to gain mainstream acceptance, their integration into traditional financial services will become increasingly common.

EXPLORE: Who Accepts Bitcoin in 2024? List of 20+ Major Companies

Growth In Market Capitalisation Of Crypto

The number of active trading clients on DBS Digital Exchange (DDEx) grew 36% in the first half of 2024 compared to 2023. Meanwhile, digital assets custodised with DBS surged over 80% in Singapore-dollar terms.

According to Coinmarketcap, approximately 50% growth in the market capitalisation of cryptocurrencies  was seen in the first five months of 2024.

Swiss banks are also setting an example, as traditional institutes embrace crypto. Swiss banks are gradually shedding their long-standing apprehension towards cryptocurrencies and are now embracing Bitcoin and other digital assets. According to a local media report, more than a quarter of Swiss banks are now offering clients access to crypto investments.

Related : Swiss Banks Embrace Bitcoin, Offer Crypto Investment Access To Clients

Currently, 28% of Swiss banks offer the opportunity to invest in crypto.

As more institutions follow suit, we may witness a gradual maturation of the crypto ecosystem. In future, traditional banks may have enhanced product offerings and improved market infrastructure.

Related: US Federal Reserve Targets Crypto-Friendly Banks Twice In A Month

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

BREAKING: FBI Operation on the CEO of the Most Talked Cryptocurrency Platform of Recent Times – Phone and Electronics Seized

The FBI launched an operation against one of the most talked about cryptocurrency platforms of the US elections. Here are the details.

Bitcoinsistemi2024/11/14 07:33

Another Good News for Bitcoin and Cryptocurrencies – BTC-Friendly Name Appointed to a Very Critical Position in the US

A name known to be cryptocurrency and Bitcoin friendly has been elected to an important position in the US. Here are all the details.

Bitcoinsistemi2024/11/14 07:33

Cardano (ADA) Foundation Announces Investment Portfolio! Do They Have Bitcoin (BTC)?

The Cardano Foundation announced that it has $478.24 million in assets, the majority of which is in ADA.

Bitcoinsistemi2024/11/14 07:33