Singapore’s DBS Bank and U.S. investment giant Goldman Sachs have executed the first-ever interbank over-the-counter (OTC) transaction involving cryptocurrency options, marking a significant milestone in the institutionalization of digital assets in Asia. The transaction featured cash-settled Bitcoin and Ethereum options, enabling banks to hedge risks associated with crypto derivatives.
Rising Demand for Institutional Crypto Products
The move reflects growing interest in structured digital products in the region. According to DBS, its clients executed more than $1 billion in crypto options and structured note transactions in H1 2025, with volumes increasing nearly 60% in Q2 compared to Q1.
Jackie Tai, Head of Trading and Structuring at DBS, commented:
“Professional investors are seeking secure, well-regulated platforms to manage digital assets. Our partnership with Goldman Sachs demonstrates how banks can leverage strong credit ratings and structured finance capabilities to bring best practices from traditional finance into the digital ecosystem.”
Market Transformation and Institutional Integration
Goldman Sachs highlighted that the deal represents structural development of the OTC crypto options market, with expectations of increased institutional activity in the coming months. The agreement underscores the role of regulated financial institutions in bridging conventional market instruments with crypto infrastructure, including options, swaps, and structured products.
DBS Expanding Its Digital Asset Strategy
This transaction aligns with DBS’s ongoing digital asset initiatives. In August 2025, the bank tokenized structured bonds on Ethereum, offered via platforms like ADDX, DigiFT, and HydraX. In September, DBS partnered with Ripple and Franklin Templeton to launch an institutional solution on the XRP Ledger, listing tokenized fund sgBENJI and stablecoin RLUSD on DBS Digital Exchange, enabling trading and lending of tokenized assets.
These developments position Asia as a leading hub for regulated digital finance, blending traditional banking expertise with innovative blockchain solutions.
