DBS Bank to Launch OTC Crypto Options Trading for Institutional Clients
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Singapore’s DBS Bank has announced plans to offer over-the-counter (OTC) crypto options trading and structured notes for its institutional clients.
In a Tuesday press release, the company said it will provide institutional investors with more sophisticated tools to gain exposure to major cryptocurrencies like Bitcoin and Ether, the two largest digital assets by market capitalization.
“It is the first Asian-headquartered bank to offer financial products whose value is linked to the price of Bitcoin and Ethereum,” the announcement said.
Starting in the fourth quarter of 2024, institutional clients seeking exposure to the crypto market will have the opportunity to invest in options trading and structured notes.
Crypto options trading involves contracts that derive their value from the underlying price of cryptocurrencies, allowing investors to hedge against the inherent volatility of digital assets.
With these contracts, traders can agree to buy or sell assets at a pre-set price at a future date.
Meanwhile, structured notes are debt securities issued by financial institutions, with returns tied to the performance of underlying assets like cryptocurrencies.
BREAKING: DBS Bank in Singapore will launch cryptocurrency options trading and structured notes for institutional and accredited investors in Q4 2024.
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