Introduction to New Offerings

Singapore's DBS Bank is poised to make history by becoming the first financial organization in Asia to offer institutional-grade cryptocurrency options trading and structured notes.

This groundbreaking move is part of the company's strategy to deepen its presence in the digital asset space for its high-net-worth and institutional clients.

The bank announced that the initiative aims to meet the growing demand from institutional and wealthy clients increasingly looking to diversify their portfolios with digital assets.

These advanced financial instruments, including crypto options trading and structured notes, will be offered exclusively to qualified investors through DBS Private Bank and DBS Treasures Private Client.

Expanding the Digital Asset Ecosystem

Through these advanced financial products, DBS is expanding its digital asset ecosystem to offer its clients new tools to explore the emerging crypto economy fully.

Investors will now have more options to manage their digital asset portfolios, whether they are looking to hedge against market fluctuations or generate yield.

"Now, our clients have an alternative channel to build exposure to the asset class and incorporate advanced investment strategies to manage their digital asset portfolios better," said Jacky Tai, a senior executive at DBS.

Managing Risk with Institutional-Grade Tools

The product will be available to eligible institutional and professional Asian customers through the company's digital asset trading platform, DBS Digital Exchange (DDEx).

The exchange, launched in 2020, already offers the bank's clients access to various digital products, including securities tokens and cryptocurrencies. However, adding options trading and structured notes will provide customers with more advanced investment tools.

DBS emphasized that these products are specifically designed to help clients manage the volatility of the crypto market. Clients can hedge their investments or, depending on the product's structure, purchase the underlying cryptocurrencies themselves.

For example, a client holding bitcoin with DBS could purchase a put option, allowing them to sell their BTC at a predetermined price on a future date. Even if Bitcoin's market price drops below the agreed level, the client can safeguard their investment and potentially realize gains.

Capitalizing on Crypto Boom

Tai said the new financial offerings launch comes when institutional investors have already shown a strong interest in crypto.

He believes the company's strong reputation since its launch in July 1968 and expertise in structured financial solutions positions the bank as a reliable partner for clients looking to build sophisticated investment strategies around digital assets.

Meanwhile, the timing of these product launches aligns with a significant surge in the global crypto market. In the first five months of 2024 alone, the total market capitalization of digital assets grew by nearly 50%.

DBS's exchange, DDEx, witnessed remarkable growth during this period, with the value of traded digital assets tripling and the number of active clients increasing by 36%.

Additionally, DBS saw a more than 80% rise in digital assets under custody, measured in Singapore-dollar terms.