DBS and Goldman Sachs complete first interbank OTC crypto options trade

Industry observers say this could accelerate the development of an interbank market for crypto derivatives.

DBS and Goldman Sachs have completed the first interbank over-the-counter (OTC) cryptocurrency options trade.

The transaction involved cash-settled Bitcoin and Ether options.

Industry observers say this could accelerate the development of an interbank market for crypto derivatives, enabling more robust hedging tools for participants.

The instruments are intended to support firms offering crypto-linked products by giving them tools to hedge and manage market exposure.

Jacky Tai, Group Head of Trading and Structuring at DBS, said the bank’s credit profile and expertise in financial engineering position it to help bring traditional finance (TradFi) best practices into digital assets.

Max Minton, Head of Digital Assets for Asia Pacific at Goldman Sachs, added that the firm expects continued growth in the space as institutional activity deepens.

The banks also issued a reminder to investors of the risks associated with crypto-linked instruments, urging market participants to assess product suitability carefully before trading.