Singapore’s largest bank, DBS, has revealed plans to launch bitcoin and crypto options trading to its customers, fostering crypto integration into traditional finance activities. Although the bank did not reveal the exact date, it noted that the development would be launched in the last quarter of 2024.
DBS to Dive into Crypto Trading
DBS announced its crypto adoption move via a press release on Tuesday, stating that it will launch over-the-counter (OTC) crypto options trading for eligible institutional investors and wealth clients.
Crypto options are contracts that let you buy or sell a cryptocurrency at a set price by a certain date.
Positioning itself as Asia’s first headquartered bank to provide crypto trading services, DBS will offer financial products linked to the value of the two largest cryptocurrencies by market capitalization, Bitcoin and Ethereum.
Currently, DBS clients who want exposure to crypto assets can trade cryptocurrencies on DBS Digital Exchange (DDEx). However, following the launch later this year, these clients can now access crypto assets through the bank’s options trading feature and structured notes to earn yield in fiat or crypto assets.
With the upcoming service, DBS will allow qualified clients to hedge their positions against market volatility while earning yield from different options trading structures.
Highlighting the reason behind this strategic move towards crypto adoption, Jacky Tai, Head of Trading and Structuring, Global Financial Markets, DBS, said:
“Professional investors are increasingly allocating to digital assets in their portfolios.”
Crypto Adoption in Asia
Asian countries like Singapore, Japan, and Hong Kong have adopted cryptocurrencies and blockchain technology over the last few years.
Earlier this month, the Monetary Authority of Singapore (MAS) licensed OKX centralized exchange, allowing the firm to offer its crypto trading services within its borders.
Following the Bitcoin Exchange-Traded Funds approval in the U.S., Hong Kong-based asset managers joined the trend, filing for crypto ETFs in the country. The Hong Kong Securities and Futures Commission approved Bitcoin and Ether ETFs, which began trading in the country in late April.
In April, Japanese company Metaplanet adopted Bitcoin as its primary reserve asset earlier this year following the Yen devaluation. Since then, the company has continued to purchase bitcoin, bringing its total Bitcoin portfolio to held 398 BTC.
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