Wall Street giant Goldman Sachs and Singapore's DBS Bank have successfully completed the first over-the-counter (OTC) cryptocurrency options trade between two major banks, announced on October 29, 2025. This landmark transaction involved cash-settled Bitcoin (BTC) and Ether (ETH) options, enabling institutions to hedge exposure to crypto market volatility using traditional finance derivatives practices.
The deal marks a significant step in institutional adoption, with both banks highlighting its role in building an interbank market for digital assets. Jacky Tai, Group Head of Trading and Structuring at DBS, stated, "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."
Max Minton, Head of Digital Assets for Asia Pacific at Goldman Sachs, added, "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." This collaboration is expected to standardize pricing and collateral practices, fostering deeper liquidity among regulated financial institutions.
Demand for crypto derivatives is surging; in the first half of 2025, DBS clients executed over $1 billion in crypto options and structured notes trades, with volumes growing nearly 60% from the first to the second quarter. This transaction underscores the rapid integration of digital assets into traditional financial infrastructure, potentially encouraging other major banks to follow suit.
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