DBS Introduces Tokenized Structured Notes on Ethereum for Investors
DBS Bank, Singapore's largest bank, is expanding its blockchain strategy by offering tokenized structured notes on the Ethereum blockchain. This initiative allows a wider range of accredited and institutional investors access to complex financial products previously exclusive to private clients.
- DBS will distribute these instruments through local exchanges ADDX, DigiFT, and HydraX.
- The debut product is a crypto-linked participation note that provides cash payouts when digital asset prices rise, with limited downside risk.
- Traditional structured notes require minimum investments of $100,000 and are non-fungible; DBS's tokenization breaks them into $1,000 units, enhancing fungibility and tradeability.
- In H1 2025, DBS clients executed over $1 billion in trades for these products, with volumes increasing nearly 60% from Q1 to Q2 2025.
- The number of single-family offices in Singapore reached over 2,000 in 2024, reflecting a 43% increase year-on-year.
- This move aligns with Singapore's evolving role as a hub for tokenized finance, supported by the Monetary Authority of Singapore's Project Guardian.
- DBS plans to extend its tokenization efforts to traditional equity- and credit-linked notes.
Li Zhen, head of foreign exchange and digital assets at DBS, emphasized that asset tokenization represents a new frontier in financial market infrastructure, catering to the growing institutional demand for digital assets.