Two of the world’s most distinguished monetary establishments, DBS and Goldman Sachs (GS), mentioned they executed the first-ever over-the-counter (OTC) cryptocurrency choices commerce between banks, marking a serious step towards institutionalizing digital property in Asia.
The commerce concerned cash-settled bitcoin and ether choices, permitting the banks to hedge publicity tied to crypto-linked merchandise, the businesses mentioned in an electronic mail. Such transactions mirror practices lengthy widespread in conventional finance, providing structured and customizable threat administration instruments for institutional portfolios.
The milestone comes amid surging demand for digital asset derivatives. Within the first half of 2025 alone, DBS purchasers executed greater than $1 billion in crypto choices and structured word trades, with volumes climbing practically 60% from the primary to the second quarter, the financial institution mentioned. Options give holders the fitting, however not the duty, to transact within the underlying asset at a predetermined worth for a specified time.
“Professional investors are seeking safe, trusted and well-managed platforms to build their digital asset portfolios,” mentioned Jacky Tai, who heads buying and selling and structuring on the Singapore-based establishment.
“Our trade with Goldman Sachs highlights how platforms can now tap the strong credit ratings and structuring capabilities of banks to bring the best practices of traditional finance into the digital asset ecosystem,” Tai mentioned within the assertion.
Goldman Sachs, one of many earliest Wall Road companies to supply crypto derivatives to institutional purchasers, mentioned the deal displays an evolution available in the market’s construction.
“The trade signifies the development of an interbank market for cash-settled OTC cryptocurrency options, an area where we expect to see continued growth as institutional investors become increasingly active,” mentioned Max Minton, the financial institution’s head of digital property for Asia Pacific.
The transaction underscores how regulated banks are shifting to bridge conventional finance and crypto markets by acquainted instruments like choices, swaps and structured notes. As extra institutional gamers undertake such hedging mechanisms, Asia’s digital asset panorama seems more and more poised to reflect the chance and liquidity frameworks that outline international capital markets.
