Singapore’s largest bank, DBS, is making waves in the cryptocurrency landscape by expanding its blockchain strategy with the introduction of tokenized structured notes on the Ethereum public blockchain. This innovative move broadens access to complex financial products that were typically reserved for private clients, setting a new precedent in the financial industry.
In a recent announcement, DBS shared its plans to distribute these tokenized instruments through local exchanges ADDX, DigiFT, and HydraX, marking the first time such products will be available to accredited and institutional investors outside its existing client base. The bank has launched a crypto-linked participation note designed to pay out in cash as digital asset prices increase, while also minimizing downside risks for investors.
Traditionally, structured notes come with hefty minimum investment amounts of $100,000 and are often highly customized, which makes them non-fungible. However, by tokenizing each note into units of $1,000, DBS is making these securities fungible and much easier to trade, thereby providing greater flexibility in portfolio management.
“Asset tokenization is the next frontier of financial markets infrastructure,” said Li Zhen, head of foreign exchange and digital assets at DBS. “Our first tokenized product addresses the growing institutional appetite for digital assets. With this initiative, a broader segment of investors can now tap our digital asset ecosystem to build exposure to the asset class.”
The increasing demand for such tokenized instruments underscores a significant trend among investors looking to integrate sophisticated investment strategies into their digital asset portfolios. In the first half of 2025 alone, DBS clients executed over $1 billion in trades involving these innovative products, with trade volumes experiencing a remarkable growth of nearly 60% between the first and second quarters.
This initiative is especially timely, as the number of single-family offices in Singapore has surged to over 2,000 in 2024—a staggering 43% increase compared to the previous year. This growth indicates a burgeoning interest in advanced financial products among family offices and professional investors in the region.
DBS’s bold step into the world of tokenized finance aligns with Singapore’s ambitions to position itself as a leading hub for such innovations. The Monetary Authority of Singapore (MAS) is actively exploring initiatives like Project Guardian, which focuses on asset tokenization across various sectors while developing essential infrastructure to enhance global liquidity. As one of the most active participants in these industry pilots, DBS is well poised to capitalize on the evolving landscape of digital finance.
Looking ahead, DBS plans to expand its tokenization offerings beyond crypto-linked notes to include more traditional equity- and credit-linked products, continuing its commitment to innovate within the financial services realm.
DBS Bank’s Blockchain Strategy and Tokenized Financial Products
Key developments regarding DBS Bank’s move to tokenize structured notes on the Ethereum blockchain:
- Expansion of Tokenized Financial Products:
- DBS is broadening access to structured notes by offering tokenized versions.
- Offers greater flexibility by lowering minimum investments from $100,000 to $1,000.
- Access for Accredited and Institutional Investors:
- Tokenized products will be available through local exchanges like ADDX, DigiFT, and HydraX.
- Initially available only to private clients, now expanding to a wider investor base.
- Growing Demand for Advanced Investment Strategies:
- Strong demand among institutional investors, particularly family offices.
- Executed over $1 billion in trades in the first half of 2025 alone.
- Impact on Financial Infrastructure:
- Initiative aligns with Singapore’s strategy to become a hub for tokenized finance.
- Involvement in MAS’s Project Guardian to explore asset tokenization across various domains.
- Future of Asset Tokenization:
- Plans to introduce tokenized equity- and credit-linked notes beyond crypto-linked instruments.
- Considered a significant step in advancing financial markets infrastructure.
“Asset tokenization is the next frontier of financial markets infrastructure.” – Li Zhen, DBS
DBS Bank’s Bold Move in Blockchain: A New Era for Tokenized Financial Products
DBS Bank’s recent decision to tokenize structured notes by leveraging the Ethereum blockchain showcases a strategic shift in the finance landscape of Singapore. This innovative approach not only democratizes access to what were previously exclusive financial instruments but also places DBS at the forefront of the financial sector’s evolution. Unlike traditional financial products that often require significant capital investment and customization, DBS’s offering simplifies engagement by breaking down these notes into $1,000 units, enhancing liquidity and attracting a wider investor base.
Competitive Advantages: The move to tokenize structured notes aligns with the growing trend among investors seeking sophisticated integration of digital assets into their portfolios. By making these products fungible, DBS positions itself as a pioneer in addressing the needs of family offices and institutional investors, who are increasingly looking for innovative solutions in a dynamic market. DBS’s proactive engagement in Project Guardian and collaboration with local exchanges further reinforce its competitive edge in fostering a robust ecosystem for digital financial products.
Challenges and Disadvantages: However, this ambitious initiative may face challenges, particularly concerning regulatory scrutiny and market volatility. As the Monetary Authority of Singapore (MAS) enhances its oversight of digital assets, DBS must navigate potential hurdles related to compliance and investor protection. Moreover, while there is a growing appetite for digital assets, fluctuations in cryptocurrency markets can pose risks for investors, potentially complicating portfolios aimed at stability and growth.
This development is likely to benefit accredited investors and institutions looking to diversify their portfolios with regulated, tokenized financial products. Conversely, it may create challenges for smaller investment firms that may struggle to adapt to this evolving landscape, as well as traditional banks that may find it difficult to compete with DBS’s cutting-edge offerings. As Singapore cements its position as a hub for tokenized finance, all eyes will be on how established entities respond to these shifts in investor expectations and technological advancements.
