Overview:
- Goldman Sachs and DBS executed the first-ever over-the-counter cryptocurrency options trade between two banks.
- The transaction involved cash-settled Bitcoin and Ether options to manage crypto exposure risks.
- This milestone signals growing institutional adoption and risk management practices in digital assets.
- DBS reported over $1 billion in crypto options and structured note trades in the first half of the year.
- The deal highlights how banks leverage strong credit ratings and structuring capabilities to integrate traditional finance into crypto ecosystems.
DBS and Goldman Sachs have completed the first-ever over-the-counter (OTC) cryptocurrency options trade between two banks, marking a milestone in the integration of traditional finance practices into the digital asset ecosystem.
Historic Trade Signals Market Maturity
The transaction involved cash-settled Bitcoin and Ether options, enabling firms to better manage cryptocurrency exposure risks. This development reflects the growing demand for crypto-linked products among accredited and institutional investors. DBS reported over USD 1 billion in cryptocurrency options and structured note trades in the first half of 2025, with volumes surging nearly 60% from Q1 to Q2.
Institutional Confidence and Risk Management
Jacky Tai, Group Head of Trading and Structuring at DBS, emphasized the significance of the deal: “Professional investors are seeking safe, trusted and well-managed platforms to build their digital asset portfolios. 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.”
A Growing Interbank Market
Goldman Sachs echoed this sentiment, noting that the trade signifies the development of an interbank market for cash-settled OTC cryptocurrency options—a space expected to grow as institutional participation rises.
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Guests Ideas:
Jacky Tai
Group Head of Trading & Structuring for Treasury & Markets
DBS
Jacky Tai is Group Head of Trading & Structuring for Treasury & Markets at DBS Bank. Based in Singapore, he brings over three decades of global financial market experience, with a strong focus on key Asian markets such as Hong Kong, China, India, and Indonesia.
He has led trading, market-making, product structuring, and risk warehousing teams across multiple asset classes regionally. Known as an innovator and market pioneer, Tai has actively contributed to public forums and industry associations. His leadership has delivered impactful business outcomes and earned numerous accolades in derivatives and local markets, reflecting his commitment to digitalization and Asian connectivity.