DBS Bank Offers Crypto To Institution Clients This Year

JAKARTA - Singapore's leading bank, DBS Bank, plans to launch a crypto option trade for institution clients in the fourth quarter of 2024. This makes DBS the first bank in Asia to offer financial products associated with Bitcoin and Ethereum value, the two largest digital assets by market cap.

In a statement released on September 17, DBS revealed that this structured crypto option product and note will be available only to eligible institutional investors and accredited clients of DBS Private Bank and DBS Treasures Private Client. This step is an extension of existing crypto services through DBS Digital Exchange (DDEx).

These new products provide clients with more ways to engage with digital assets. Investors can now earn returns from fiat currencies or receive the underlying cryptocurrencies. In addition, Bitcoin and Ethereum holders on DBS are also benefiting in addition. They can now protect themselves from market fluctuations and potentially benefit through various options strategies.

The Head of DBS Group Trading and Structure, Total Tai, highlighted the increasing demand for digital assets among professional investors. Tai explained that this new product expands its digital asset banking services and provides alternative channel clients to build exposure to this asset class and adopts advanced investment strategies to better manage their digital asset portfolios.

For example, a client worried about Bitcoin price fluctuations can buy put options, allowing them to sell Bitcoin at a certain price in the future, even if market prices fall below that level.

Crypto trading growth on DBS also showed significant results. During the first five months of 2024, the trading volume of digital payment tokens on DDEx increased threefold compared to the same period in 2023.

The number of active trading clients grew by 36%, while managed digital assets increased by 80%. The bank said that this growth was driven by a net inflow of deposits from clients looking for secure, bank-standard, digital asset storage and trading platforms.