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 fall 2024, in response to 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 property by market capitalization.
In keeping with the financial institution, the crypto choices and structured notes merchandise will solely be out there to eligible institutional traders and accredited purchasers 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 current crypto companies by means of DBS Digital Change (DDEx).
The brand new merchandise give purchasers extra methods to have interaction with digital property as traders can now doubtlessly earn a yield on fiat foreign money or take supply of underlying crypto.
Additionally, Bitcoin and Ethereum holders at DBS achieve further advantages. They’ll now hedge in opposition to market swings and probably generate returns by means of numerous choices methods.
Jacky Tai, head of buying and selling and structuring at DBS Group, highlighted the rising demand for digital property amongst skilled traders. He defined how these new merchandise broaden the financial institution’s digital asset companies.
He mentioned:
“These monetary merchandise are an growth of the financial institution’s worth proposition to supply purchasers trusted institutional-grade entry to the digital asset ecosystem. Now, our purchasers 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 stage.
Crypto buying and selling increase
DBS additionally reported vital development in crypto buying and selling volumes on its digital change.
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 purchasers grew by 36%, whereas digital property underneath custody elevated by 80%.
The financial institution credited this development to a internet influx of deposits from purchasers in search of secure, bank-grade platforms for custody and buying and selling of digital property.
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