First Interbank OTC Crypto Options Trade Completed

Goldman Sachs and DBS have successfully completed the first-ever over-the-counter (OTC) cryptocurrency options trade between two banks. According to a story in MarketsMedia news, the involvement of two trusted, well-capitalized banks in this pioneer transaction marks a new milestone in the maturation of digital assets in the region. It also demonstrates how the ecosystem is increasingly adopting risk management best practices that form the bedrock of traditional asset classes. The transaction between DBS and Goldman Sachs involved trading cash-settled OTC Bitcoin and Ether options. Such trades enable firms which offer cryptocurrency-linked products to better manage the risk profile of their cryptocurrency exposures. Max Minton, Head of Digital Assets in Asia Pacific at Goldman Sachs, said: “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 in this space.”