DBS, Goldman Sachs Execute First Over-the-Counter Interbank Crypto Options Trade

DBS and Goldman Sachs have achieved a significant milestone in the cryptocurrency market by executing the first-ever over-the-counter (OTC) cryptocurrency options trade between banks. This transaction involved cash-settled options for bitcoin and ether, allowing both financial institutions to hedge their exposure related to crypto products. The deal is indicative of the increasing demand for digital asset derivatives and aligns traditional finance practices with the digital asset ecosystem. In the first half of 2025, DBS clients executed over $1 billion in crypto options and structured note trades, reflecting a 60% increase in volume from the previous quarter. Leaders from both banks noted that the trade illustrates the evolution of an interbank market for cash-settled crypto options, which is expected to grow as institutional investors become more involved in digital assets. The integration of options and structured products highlights banks' efforts to bridge conventional finance with the cryptocurrency market, aiming to establish a robust risk and liquidity framework similar to traditional capital markets.

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