DBS Bank in Singapore is getting ready to offer its business and high-net-worth clients over-the-counter (OTC) trading in cryptocurrency options and structured notes. The rollout is likely to happen in the fourth quarter of 2024. With this new service, you can get exposure to Bitcoin and Ethereum, two of the biggest cryptocurrencies, through financial products like options and structured notes.
When people use these tools, they can protect themselves from the unstable crypto market or even make money based on how prices change. A crypto options contract lets investors lock in a price for buying or selling coins at a later date. Structured notes, on the other hand, are debt securities that give investors returns based on the assets they are backed by.
Taking care of crypto volatility
There are ways for institutional buyers who keep Bitcoin and Ethereum with DBS to lower their market risk. For example, buyers can buy a “put option” that lets them sell Bitcoin at a certain price. This protects them in case prices drop below that level in the future. Jacky Tai, who is the group head of trade and structuring at DBS, said that this move lets professional investors use more advanced investment methods and include more digital assets in their portfolios.
Using the Web3 infrastructure
DBS has been using Web3 technology more and more. The bank tested DBS Treasury Tokens on a blockchain platform in early 2024 to improve how it managed cash flow. It also started using blockchain technology to improve how government funds are given out, which sped up the process and made government better.
Singapore is a leader in crypto
Singapore is still the most popular place to use cryptocurrencies, thanks to its friendly rules and forward-thinking banking system. The country is now ahead of other financial hubs like Hong Kong and the UAE, making it the world leader in new digital assets.
