DBS and Goldman Sachs Complete First Interbank Crypto Options Trade
Two major financial institutions, DBS Bank and Goldman Sachs, have completed the first over-the-counter (OTC) cryptocurrency options trade between banks. This marks a significant step in integrating digital assets into traditional finance.
- The trade involved cash-settled Bitcoin and Ether options, aimed at helping both banks manage exposures linked to crypto products.
- The transaction is seen as a reflection of traditional risk management tools applied to digital assets, providing customizable hedging solutions for investors.
Jacky Tai from DBS highlighted that this trade demonstrates how banking institutions can incorporate best practices from traditional finance into the digital asset ecosystem.
DBS also reported over $1 billion in crypto options and structured note trades by its clients in the first half of 2025, with trading volumes increasing nearly 60% quarter-over-quarter.
Institutional Demand for Crypto Derivatives Anticipated
Goldman Sachs, an early Wall Street firm in offering crypto derivatives, views this transaction as a new phase in digital asset markets' evolution.
- The collaboration with DBS lays the groundwork for an interbank crypto options market, anticipating growing demand as institutions seek compliant crypto exposure.
Max Minton from Goldman Sachs noted that this trade signifies the development of an interbank market for cash-settled OTC cryptocurrency options, expecting continued growth as institutional investors become more active.
Additionally, major crypto firms aim to integrate more closely with the US banking system, with entities like Crypto.com seeking US federal bank charters, highlighting regulatory support for cryptocurrencies.