Saxo launches crypto FX trading for Bitcoin, Ethereum and Litecoin in Singapore

AS interest around crypto assets continues to grow, online trading platform Saxo Markets has launched a new cryptocurrency offering for investors to trade Bitcoin, Ethereum and Litecoin against the euro, yen and US dollar from a single margin account.

Investors in selected markets, including Singapore, can trade the new "Crypto FX" pairs during the usual foreign exchange trading hours. They can trade and hedge both long and short exposure in the three major cryptocurrencies, which will be in the form of derivatives and not physical coins, said Saxo in a statement on Wednesday.

Due to the volatile nature of the instruments, retail investors can trade on 60 per cent margin, while accredited investors can trade on 40 or 50 per cent margin.

Saxo said the new offering complements its existing range of over 30 different cryptocurrency trackers and exchange-traded notes (ETNs), which year-to-date have seen trading volumes exceed the entire turnover for the whole of 2020 - a year in which volumes grew 130 per cent.

Adam Reynolds, Asia-Pacific CEO of Saxo Markets, noted that pairing crypto with FX makes it more appealing to investors who are more active in the market as it offers a "trusted and secure" way to trade cryptos.

"While buying a whole bitcoin can be a rather large exposure for the average retail investor, trading via ETNs for example lets more investors access this product in a way that works for their portfolio and makes the most of its volatility. It's also fundamentally less risky than using cryptocurrency wallets where access can, and has, been lost to dramatic effect," he said.

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Last Friday, DBS Private Bank, via its wholly-owned trust company, launched a trust solution for cryptocurrencies to allow its private banking clients to invest, custodise and manage digital assets. This offering applies only to Bitcoin, Ether, Bitcoin Cash and XRP, which are the four cryptocurrencies hosted on the DBS Digital Exchange. The members-only exchange was launched in December last year, and is accessible to institutional and accredited investors.

Last month, Morgan Stanley became the first US bank to offer wealthy clients access to Bitcoin funds. Goldman Sachs, too, has announced plans to offer Bitcoin and other digital assets this quarter. UBS, the world's largest private bank, is also said to be exploring offering crypto investments to its wealthy customers.

READ MORE: BT Explains: How Singapore is warming to crypto and digital assets