DBS and Goldman Execute First Interbank Crypto Options Trade
First Interbank Crypto Options Trade
DBS and Goldman Sachs said they have completed the first over-the-counter cryptocurrency options trade between banks, a step that brings the structure of traditional finance deeper into Asia’s digital asset market.
The deal involved cash-settled BTC (BTC) and ether (ETH) options, enabling both institutions to hedge exposure linked to crypto-related products. The banks described the trade as a move toward standardized, risk-managed participation in digital assets using familiar tools from derivatives markets.
Investor Takeaway
Rising Demand for Crypto Derivatives
DBS said its clients executed more than $1 billion in crypto options and structured note transactions in the first half of 2025, with volumes rising nahead 60% from the first to the second quarter. The Singapore-based bank added that institutional investors are showing increasing appetite for derivatives that provide exposure without the need to hold underlying assets.
“Professional investors are viewking secure, trusted and well-managed platforms to build their digital asset portfolios,” said Jacky Tai, who overviews trading and structuring at DBS. “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.”
Options contracts allow holders to purchase or trade an asset at a fixed price within a set period, giving institutions a flexible tool for hedging price movements. The entry of global banks into OTC crypto options expands the scope for hedging products in an area once dominated by specialist platforms and over-the-counter desks.
Goldman Sachs views Market Evolution
Goldman Sachs, one of the first Wall Street firms to offer crypto derivatives, said the transaction represents a turning point for digital asset markets. “The trade signifies the development of an interbank market for cash-settled OTC cryptocurrency options, an area where we expect to view continued growth as institutional investors become increasingly active,” said Max Minton, the bank’s head of digital assets for Asia Pacific.
Such bilateral trades are expected to form the basis for a deeper liquidity network between regulated financial institutions. Analysts say the move could assist standardize pricing and collateral practices, creating clearer benchmarks for institutional participation in digital asset derivatives.
Investor Takeaway
Institutional Integration Gains Pace
The transaction underscores how banks are integrating digital assets into existing financial infrastructure. DBS and Goldman Sachs have both been expanding their tokenization and digital asset services over the past year, viewking to align with demand from hedge funds, family offices and corporates.
For DBS, the deal builds on its broader digital strategy. The bank recently launched tokenized structured notes on ETH and partnered with Franklin Templeton and Ripple on blockchain-based lending. Goldman Sachs, meanwhile, continues to develop its digital asset business in Asia, focusing on regulated derivatives and custody offerings.
As more banks adopt familiar instruments such as options, swaps and structured notes in crypto markets, Asia’s institutional framework is beginning to resemble the structure of traditional capital markets — with regulated banks providing liquidity, compliance and credit assurance once absent from the sector.
