DBS + Goldman Sachs Move Into Institutional Crypto Derivatives
People’s Bank of China chief gives stark warning on stablecoins
Singapore-based DBS Bank and Goldman Sachs have executed what they describe as the first ever over-the-counter (OTC) crypto options trade between two banks, involving cash-settled options on both Bitcoin and Ethereum.
The deal signals a growing institutional appetite for crypto-derivatives in Asia. According to DBS, client activity in crypto-linked options and structured products exceeded US$1 billion in the first half of 2025, rising nearly 60 % from Q1 to Q2.
Jacky Tai, DBS’s Group Head of Trading & Structuring (Global Financial Markets), commented that the trade “highlights how platforms can now tap banks’ strong credit ratings and structuring capabilities to bring traditional-finance best practices into the digital-asset ecosystem.”
For Goldman Sachs, Max Minton (Head of Digital Assets, Asia Pacific) said the trade “signifies the development of an inter-bank market for cash-settled OTC cryptocurrency options… an area where we expect to see continued growth.”
Why this matters:
- This expands institutional tools for managing crypto risk, moving beyond spot holdings into derivatives.
- Asia-Pacific banks may be increasingly willing to offer crypto-linked structured products, signalling deepening regional adoption.
- With banks now directly trading crypto options, the infrastructure and regulatory expectations for these markets may shift significantly.
Risks & caveats:
- Crypto derivatives carry high complexity and risk; institutions must manage hedging, margin, and counterparty-risk much like traditional derivatives, but in a much more volatile asset environment.
- Regulatory regimes in many jurisdictions remain unsettled for crypto-derivative activity; banks may face shifting rules in Asia and beyond.
China’s Central Bank Doubles Down on Stablecoin Warnings
In Beijing, Pan Gongsheng, Governor of the People’s Bank of China (PBOC), delivered a strong warning about stablecoins at the Financial Street Forum: that they “fail to meet basic requirements such as customer identification and anti-money-laundering” and that they “increase the vulnerability of the global financial system and undermine the monetary sovereignty of some countries.”
Pan also reaffirmed China’s commitment to expanding its state-backed digital currency (e-CNY) while continuing a crackdown on private crypto activity, including stablecoins. He said the PBOC would “work with law-enforcement agencies to crack down on relevant activities within mainland China to safeguard economic and financial order.”
Why this matters:
- China’s stance underlines the regulatory divergence in Asia: while Singapore-based banks are moving into crypto derivatives, mainland China is reinforcing restrictions.
- The PBOC’s emphasis on regulatory enforcement and monetary sovereignty suggests any private stablecoin projects, especially offshore or cross-border, will face elevated scrutiny.
- Investors and crypto firms operating in or targeting Chinese-speaking markets may need to adapt to a dual environment of financial innovation in the region, yet stringent regulation in China.
Risks & caveats:
- Even with strong rhetoric, enforcement actions take time and may target specific segments; the broader landscape of Asian crypto innovation continues to evolve.
- Firms interpreting China’s policy stance should differentiate between digital-asset innovation (e-CNY) and private stablecoin issuance—and must consider cross-border regulatory fall-out.
Bottom Line
This week’s developments capture a significant regional inflection point: in Southeast Asia, institutional banks like DBS and Goldman Sachs are pioneering crypto derivatives products, while in mainland China, the central bank is emphasising caution and emphasizing sovereignty in the digital-asset space. For market participants, the message is clear: the Asia-Pacific crypto landscape is not uniform—it’s increasingly divided between innovation hubs and regulatory-tight jurisdictions.
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