DBS Financial institution of Singapore plans to launch over-the-counter (OTC) crypto choices buying and selling and structured notes for institutional purchasers in This autumn 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 response to the financial institution, the crypto choices and structured notes merchandise will solely be out there to eligible institutional buyers and accredited purchasers of DBS Personal Financial institution and DBS Treasures Personal Consumer.
New crypto choices
The financial institution revealed that its new merchandise construct on its current crypto providers by way of DBS Digital Trade (DDEx).
The brand new merchandise give purchasers extra methods to interact with digital belongings as buyers can now doubtlessly earn a yield on fiat foreign money or take supply of underlying crypto.
Additionally, Bitcoin and Ethereum holders at DBS acquire further advantages. They will now hedge in opposition to market swings and presumably generate returns by way 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 mentioned:
“These monetary merchandise are an enlargement of the financial institution’s worth proposition to supply purchasers trusted institutional-grade entry to the digital asset ecosystem. Now, our purchasers have another channel to construct publicity to the asset class and incorporate superior funding methods to higher handle their digital asset portfolios.”
For instance, a consumer nervous about Bitcoin’s worth swings may purchase a put choice. This permits them to promote Bitcoin at a set worth sooner or later, even when the market worth falls beneath that degree.
Crypto buying and selling increase
DBS additionally reported vital progress in crypto buying and selling volumes on its digital trade.
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 energetic buying and selling purchasers grew by 36%, whereas digital belongings beneath custody elevated by 80%.
The financial institution credited this progress to a internet influx of deposits from purchasers in search of protected, bank-grade platforms for custody and buying and selling of digital belongings.
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