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Two major financial institutions, DBS Bank and Goldman Sachs, have jointly executed the world’s first OTC crypto options trade between banks, in what experts are calling a pivotal moment for institutional digital asset adoption.
The OTC crypto options trade—announced less than an hour ago—was a cash-settled transaction involving bitcoin (BTC) and ether (ETH) options. According to both firms, the move represents a strategic advancement in the use of customizable derivatives to hedge exposure tied to crypto-linked products.
The deal, completed in Asia, demonstrates how traditional financial instruments like options can be adapted to the digital asset space, helping institutions manage volatility while maintaining compliance and control.
The OTC crypto options trade between DBS and Goldman Sachs mirrors long-standing practices in traditional finance, where over-the-counter options are used to create flexible and structured hedging solutions. The banks said this latest move builds on the growing demand among professional investors for sophisticated crypto risk management tools.
In the first half of 2025 alone, DBS clients executed more than $1 billion in crypto options and structured note trades, a 60% rise in volume from the first to the second quarter. The bank noted that these developments reflect increased institutional participation in crypto markets despite global regulatory scrutiny.
“Professional investors are seeking safe, trusted and well-managed platforms to build their digital asset portfolios,” — Jacky Tai, Head of Trading and Structuring, DBS.
Tai added that the partnership with Goldman Sachs shows how the banking industry is “bringing the best practices of traditional finance into the digital asset ecosystem.”
By facilitating this OTC crypto options trade, both banks have set a precedent for future interbank collaboration in a sector historically dominated by crypto-native firms and unregulated exchanges.
Goldman Sachs, among the first Wall Street firms to offer crypto derivatives to institutional clients, said the OTC crypto options trade demonstrates how rapidly market structures are evolving.
“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,” — Max Minton, Head of Digital Assets for Asia Pacific, Goldman Sachs.
The OTC crypto options trade also highlights a shift from speculative retail activity toward a more sophisticated, compliance-driven market architecture. Institutional investors now appear to prefer regulated venues and established banking partners that offer the same level of security and transparency found in conventional capital markets.
Analysts say this marks a turning point for Asia, which is positioning itself as a hub for regulated digital asset innovation. With Singapore and Hong Kong leading the charge, banks like DBS and Goldman Sachs are leveraging strong regulatory frameworks to make institutional crypto exposure safer and more scalable.
The OTC crypto options trade underscores a growing effort by regulated banks to merge traditional finance (TradFi) mechanisms with decentralized asset classes. By employing familiar instruments like options, swaps, and structured notes, financial institutions are crafting a bridge between legacy banking systems and blockchain-based markets.
Such integration not only provides institutional investors with familiar risk controls but also enhances liquidity and price stability across digital asset exchanges. As more regulated players enter the space, experts expect interbank activity in crypto derivatives to grow rapidly.
The collaboration between DBS and Goldman Sachs could inspire other global banks to follow suit, creating a blueprint for interbank trading that prioritizes transparency, compliance, and innovation.
Ultimately, the OTC crypto options trade represents more than a single transaction—it reflects a deeper alignment between the principles of traditional finance and the possibilities of the digital economy.
