Milestone Deal Brings Institutional Finance Deeper Into Digital Assets
Singapore-based DBS Bank and Goldman Sachs have executed the first-ever over-the-counter (OTC) cryptocurrency options trade between banks, a development that marks a new phase in the integration of traditional finance with digital assets in Asia.
According to a joint statement, the transaction involved cash-settled bitcoin and ether options, enabling both banks to hedge exposure tied to crypto-linked products. These trades mirror long-standing derivatives practices in global markets, providing institutional investors with structured and customizable risk-management tools.
Growing Institutional Demand for Crypto Derivatives
The milestone comes amid a sharp rise in demand for digital asset derivatives across Asia. In the first half of 2025, DBS clients executed more than $1 billion in crypto options and structured note transactions, with trading volume rising nearly 60% between the first and second quarters.
“Professional investors are seeking safe, trusted and well-managed platforms to build their digital asset portfolios,” said Jacky Tai, head of trading and structuring at DBS. “Our trade with Goldman Sachs shows how banks can combine strong credit ratings with advanced structuring capabilities to bring traditional finance standards into the digital asset ecosystem.”
Goldman Sachs Sees a New Interbank Market Emerging
Goldman Sachs, an early Wall Street participant in the crypto-derivatives space, emphasized that the trade reflects a maturing interbank market for regulated digital-asset products.
“This transaction represents the development of an interbank market for cash-settled cryptocurrency options,” said Max Minton, head of digital assets for Asia Pacific at Goldman Sachs. “We expect to see continued growth as institutional investors become increasingly active in this area.”
The deal underscores how regulated institutions are now bridging traditional finance and crypto through familiar instruments such as options, swaps, and structured notes. As adoption grows, Asia’s digital asset landscape appears poised to mirror the liquidity and risk frameworks that define global capital markets — signaling a new chapter for institutional crypto integration.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.