Crypto Options Go Institutional: DBS and Goldman Sachs Lead Landmark OTC Trade
Two of the world’s most prominent financial institutions, DBS and Goldman Sachs (GS), have carried out the first-ever over-the-counter (OTC) cryptocurrency options trade between banks, marking a historic moment in the institutional adoption of digital assets in Asia.
A Landmark Step Toward Institutionalizing Crypto
The trade involved cash-settled Bitcoin and Ether options, enabling both banks to hedge exposure tied to crypto-linked products. These transactions mirror long-standing practices in traditional finance, where options are used as structured and customizable risk management tools for institutional portfolios.
The move signals a pivotal shift in how major banks are approaching digital assets. By executing a deal directly between two regulated institutions, DBS and Goldman Sachs have demonstrated that cryptocurrency derivatives can be handled with the same rigor, structure, and oversight as other asset classes in global markets.
Surging Demand for Crypto Derivatives
The milestone comes amid a wave of demand for digital asset derivatives. In the first half of 2025 alone, DBS clients executed more than $1 billion in crypto options and structured note trades, with volumes climbing nearly 60% from the first to the second quarter, according to the bank.
Options contracts grant the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a set time period. For professional investors, such instruments are crucial for managing volatility — a defining characteristic of crypto markets.
“Professional investors are seeking safe, trusted and well-managed platforms to build their digital asset portfolios,” said Jacky Tai, who heads trading and structuring at DBS.
Bringing Wall Street Practices to Digital Assets
Tai emphasized that the trade with Goldman Sachs showcases how traditional financial institutions can leverage their established credit ratings and structuring expertise to strengthen the digital asset ecosystem.
“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 said in a statement.
Goldman Sachs, one of the earliest Wall Street firms to offer crypto derivatives to institutional clients, described the transaction as an evolution in the market’s structure.
“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,” said Max Minton, Goldman Sachs’ head of digital assets for Asia Pacific.
Bridging Traditional Finance and Digital Markets
The transaction is the latest in a growing trend among regulated financial institutions of bridging traditional finance and crypto markets through familiar instruments such as options, swaps, and structured notes.
As more institutions enter the space, Asia’s digital asset landscape is beginning to resemble the risk management and liquidity frameworks that underpin global capital markets.
