DBS Financial institution of Singapore plans to launch over-the-counter (OTC) crypto choices buying and selling and structured notes for institutional shoppers in This fall 2024, based on a Sept. 17 assertion.
This transfer positions DBS as the primary Asian-headquartered financial institution to supply monetary merchandise tied to the worth of Bitcoin and Ethereum, the 2 largest digital belongings by market capitalization.
In keeping with the financial institution, the crypto choices and structured notes merchandise will solely be accessible to eligible institutional buyers and accredited shoppers of DBS Non-public Financial institution and DBS Treasures Non-public Consumer.
New crypto choices
The financial institution revealed that its new merchandise construct on its present crypto providers by means of DBS Digital Trade (DDEx).
The brand new merchandise give shoppers extra methods to interact with digital belongings as buyers can now probably earn a yield on fiat forex or take supply of underlying crypto.
Additionally, Bitcoin and Ethereum holders at DBS achieve extra advantages. They will now hedge towards market swings and presumably generate returns by means of varied choices methods.
Jacky Tai, head of buying and selling and structuring at DBS Group, highlighted the rising demand for digital belongings amongst skilled buyers. He defined how these new merchandise broaden the financial institution’s digital asset providers.
He stated:
“These monetary merchandise are an growth of the financial institution’s worth proposition to supply shoppers trusted institutional-grade entry to the digital asset ecosystem. Now, our shoppers have an alternate channel to construct publicity to the asset class and incorporate superior funding methods to higher handle their digital asset portfolios.”
For instance, a shopper frightened about Bitcoin’s value swings might purchase a put possibility. This enables them to promote Bitcoin at a set value sooner or later, even when the market value falls under that degree.
Crypto buying and selling increase
DBS additionally reported important development in crypto buying and selling volumes on its digital alternate.
Within the first 5 months of 2024, buying and selling quantity for digital fee tokens on DDEx tripled in comparison with the identical interval in 2023. The variety of lively buying and selling shoppers grew by 36%, whereas digital belongings underneath custody elevated by 80%.
The financial institution credited this development to a web influx of deposits from shoppers looking for protected, bank-grade platforms for custody and buying and selling of digital belongings.
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