DBS Bank Expands Crypto Offerings as Client Demand Rises
DBS Bank, Singapore's largest bank with a market capitalization of $105 billion, is set to expand its cryptocurrency services in the fourth quarter of this year, driven by increasing demand from its high-net-worth clients.
The bank announced today its plans to introduce over-the-counter trading for crypto options and structured notes for its accredited clients who hold Bitcoin and Ethereum.
According to DBS, it will be the first "Asia-based bank to offer financial products whose value is tied to the price of Bitcoin and Ethereum."
DBS is no stranger to the crypto space. The bank already operates the DBS Digital Exchange (DDEx), where clients can trade cryptocurrencies and security tokens. Building on this foundation, the bank will begin offering options and structured notes trading, enabling users to either receive their returns in fiat or take delivery of the underlying currency.
Options trading involves buying and selling contracts that give the client the right (but not the obligation) to buy or sell the underlying assets, in this case, BTC and ETH. Call options provide the right to buy the asset, while put options pertain to selling the asset.
Structured notes, on the other hand, are more complex as they don’t follow a fixed format, offering flexibility. Banks typically use them to issue notes whose returns are tied to the performance of underlying assets, such as ETH and BTC.
DBS Bank Goes All-In on Crypto
The expansion of DBS Bank's crypto products reflects the growing demand from its clients for more sophisticated crypto offerings, said Jacky Tai, Group Head of Trading and Structuring at DBS. She noted that customers are increasingly allocating parts of their portfolios to cryptocurrencies. She added:
"Backed by DBS's strong credit ratings and long-standing experience in structuring solutions, these financial products extend the bank’s value proposition, providing clients with a trusted, institutional gateway to the digital asset ecosystem. Now, our clients have an alternative channel to build exposure to the asset class and deploy advanced investment strategies to better manage their digital asset portfolios."
For DBS, the decision to expand its crypto offerings was an easy one. In the first eight months of the year, DDEx tripled its trading volume compared to the previous year. The bank also reported a 36% increase in clients, with the value of digital assets under custody rising by 80%.
