As a seasoned crypto investor with over two decades of experience navigating the ever-evolving financial landscape, I find the recent move by DBS Bank to launch crypto options and structured notes for institutional and accredited clients a promising development. Being based in Singapore myself, I have seen firsthand how Asia’s financial sector has been slow to adopt cryptocurrencies compared to their Western counterparts.
Financier titan DBS plans to debut cryptocurrency options and structured notes aimed at institutional and accredited investors, making it the first Asian bank to provide these specific services.
Starting in the fourth quarter of 2024, DBS Bank, headquartered in Singapore, intends to make available cryptocurrency options trading over-the-counter, as well as structured notes for institutional investors who meet eligibility requirements and accredited wealth clients, in a user-friendly manner.
In a press release dated September 17, the bank announced that they are now the first financial institution in Asia to provide financial products tied to the value of Bitcoin (BTC) and Ethereum (ETH). DBS group head of trading and structuring, Jacky Tai, stated that this move is in response to a growing trend among professional investors who are incorporating digital assets into their investment portfolios.
Currently, we offer our clients a new route for diversifying their investments in digital assets, allowing them to utilize sophisticated investment tactics that enhance portfolio management.
Jacky Tai
To date, the bank facilitates clients’ trading of both cryptocurrencies and security tokens through its subsidiary, DBS Digital Exchange. The upcoming venture introduces options trading and structured notes, enabling clients to generate returns on their investments. This could either be in the form of interest on traditional currencies or receiving the underlying cryptocurrency itself, as suggested by the press release.
As a researcher studying financial instruments, I might explain it this way: “When dealing with the unpredictable nature of Bitcoin, a client could opt for purchasing a put option. This choice grants them the ability to sell Bitcoin at a predetermined price in the future, regardless of whether the Bitcoin market value drops below that fixed price by then.
DBS
Despite the bank expanding into web3 technologies, it’s important to note that crypto options and structured notes will remain exclusive to institutional investors and accredited clients at DBS Private Bank and DBS Treasures Private Client, as stated in the recent announcement.
By the end of August, DBS introduced a blockchain system with smart contracts for smoother handling of government grant payments. They mentioned that this initial trial was designed to showcase the potential of these automated grants to boost both transparency and operational efficiency when distributing grants.
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2024-09-17 12:20